(RTTNews) – The China stock market has moved higher in two straight sessions, advancing more than 90 points or 2.8 percent along the way. The Shanghai Composite Index now rests just above the 3,450-point plateau and it may see continued strength on Wednesday.
The global forecast for the Asian markets is positive on continued bargain hunting and optimism over earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The SCI finished modestly higher on Tuesday as gains from the financial shares and resource stocks were capped by weakness from the property stocks.
For the day, the index collected 23.05 points or 0.67 percent to finish at 3,452.63 after trading between 3,390.46 and 3,453.19. The Shenzhen Composite Index fell 5.48 points or 0.24 percent to end at 2,280.51.
Among the actives, Industrial and Commercial Bank of China rallied 2.32 percent, while Bank of China climbed 1.28 percent, China Construction Bank soared 3.26 percent, China Merchants Bank collected 0.70 percent, Bank of Communications jumped 1.44 percent, China Life Insurance accelerated 2.30 percent, Jiangxi Copper strengthened 1.83 percent, Aluminum Corp of China (Chalco) skyrocketed 4.80 percent, Yankuang Energy surged 4.65 percent, PetroChina added 0.91 percent, China Petroleum and Chemical (Sinopec) advanced 1.38 percent, Huaneng Power perked 3.00 percent, China Shenhua Energy soared 6.17 percent, Gemdale fell 0.38 percent, Poly Developments dropped 1.00 percent, China Vanke eased 0.14 percent and Beijing Capital Development improved 1.71 percent.
The lead from Wall Street is solid as the major averages shook off early weakness on Tuesday and picked up steam as the session progressed, ending firmly in positive territory.
The Dow spiked 371.65 points or 1.06 percent to finish at 35,462.78, while the NASDAQ jumped 178.79 points or 1.28 percent to end at 14,194.79 and the S&P 500 gained 37.67 points or 0.84 percent to close at 4,521.54.
The strength that emerged on Wall Street came as traders continued to pick up stocks at relatively reduced levels as they digest the latest batch of quarterly earnings news.
Motorcycle maker Harley Davidson (HOG) and education technology company Chegg (CHGG) led the way higher, while drug giant Pfizer fell under pressure.
In economic news, the Commerce Department released a report showing the U.S. trade deficit widened modestly in December.
Crude oil prices settled sharply lower Tuesday, extending losses from the previous session. Oil prices dropped with traders eyeing U.S.-Iran talks, which if successful could flood the market. West Texas Intermediate Crude oil futures for March dropped $1.96 or about 2.2 percent at $89.36 a barrel.
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