(RTTNews) – The China stock market has finished higher in back-to-back sessions, surging more than 140 points or 4.4 percent along the way. The Shanghai Composite Index now sits just beneath the 3,360-point plateau and it’s got a positive lead again for Tuesday’s trade.
The global forecast for the Asian markets is upbeat, with tech shares expected to lead the way higher. The European markets were mixed and the U.S. bourse were broadly higher and the Asian markets are tipped to follow the latter lead.
The SCI finished sharply higher on Monday following gains from the financials, properties and oil and insurance companies.
For the day, the index soared 86.39 points or 2.64 percent to finish at 3,358.47 after trading between 3,286.11 and 3,359.15. The Shenzhen Composite Index surged 73.40 points or 3.31 percent to end at 2,289.36.
Among the actives, Industrial and Commercial Bank of China climbed 1.02 percent, while Bank of China collected 0.62 percent, China Construction Bank jumped 1.47 percent, China Merchants Bank rallied 3.81 percent, Bank of Communications advanced 1.10 percent, China Life Insurance soared 4.48 percent, Ping An Insurance surged 3.80 percent, PetroChina gained 1.21 percent, China Petroleum and Chemical (Sinopec) added 0.76 percent, China Shenhua Energy increased 0.97 percent, Gemdale spiked 2.40 percent, Poly Developments accelerated 2.30 percent and China Vanke gathered 1.00 percent.
The lead from Wall Street is broadly positive as stocks moved sharply higher on Monday, extending the strong upward move seen in recent sessions and sending the major averages to their best closing levels in a month.
The Dow jumped 250.62 points or 0.88 percent to finish at 28,837.52, while the NASDAQ surged 296.32 points or 2.56 percent to end at 11,876.26 and the S&P 500 perked 57.09 points or 1.64 percent to close at 3,534.22.
Technology stocks led the markets higher, as reflected by the significant advance by the tech-heavy NASDAQ. Apple (AAPL) posted a standout gain, surging up by 6.4 percent, while Facebook (FB) and Google parent Alphabet (GOOGL) also moved notably higher.
Shares of Twitter (TWTR) also showed a strong move to the upside after Deutsche Bank upgraded its rating on the social media giant to Buy from Hold.
The markets also continued to benefit from optimism about a new stimulus bill even though House Speaker Nancy Pelosi said talks will remain at an impasse until serious issues with the Trump administration’s latest proposal are resolved.
Crude oil prices declined sharply on Monday amid concerns over excess supply in the market and worries about a possible drop in energy demand due to rising coronavirus cases. West Texas Intermediate Crude oil futures for November were down $1.17 or 2.9 percent at $39.43 a barrel.
Closer to home, China will release September figures for imports, exports and trade balance. Imports are expected to add 0.2 percent on year after losing 2.1 percent in August. Exports are called higher by an annual 10.0 percent after rising 9.5 percent in the previous month. The trade surplus is pegged at $59.98 billion, up from $58.93 billion a month earlier.
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