Markets

China Shares Lined Up For Additional Support

(RTTNews) - The China stock market has moved higher in two straight sessions, accelerating more than 80 points or 2.4 percent along the way. The Shanghai Composite Index now sits just above the 3,365-point plateau and it's set to extend its winning streak on Tuesday.

The global forecast for the Asian markets is broadly positive on strong economic data and continued support from technology stocks. The European and U.S. markets were firmly in the green and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply higher on Monday with gains across the board - especially the financials, properties and oil and insurance companies.

For the day, the index jumped 57.96 points or 1.75 percent to finish at 3,367.97 after trading between 3,327.68 and 3,368.10. The Shenzhen Composite Index surged 58.57 points or 2.60 percent to end at 2,315.44.

Among the actives, Industrial and Commercial Bank of China collected 0.40 percent, while Bank of China rose 0.30 percent, China Construction Bank added 0.49 percent, China Merchants Bank gained 0.57 percent, China Life Insurance spiked 2.58 percent, Ping An Insurance increased 0.71 percent, PetroChina perked 0.67 percent, China Petroleum and Chemical (Sinopec) was up 0.25 percent, Baoshan Iron advanced 1.02 percent, Gemdale surged 2.36 percent, Poly Developments soared 1.79 percent and China Vanke jumped 1.64 percent.

The lead from Wall Street is solid as stocks moved mostly higher on Monday, with the tech-heavy NASDAQ hitting a fresh record closing high.

The Dow jumped 236.08 points or 0.89 percent to finish at 26,664.40, while the NASDAQ spiked 157.52 points or 1.47 percent to end at 10,902.80 and the S&P 500 rose 23.49 points or 0.72 percent to close at 3,294.61.

Technology stocks saw continued strength on the day after moving sharply higher last Friday on largely upbeat earnings news - particularly Microsoft (MSFT) and Apple (AAPL).

Adding to the positive sentiment, the Institute for Supply Management reported a bigger than expected acceleration in the pace of growth in U.S. manufacturing activity in July - which came on the heels of upbeat readings on manufacturing in China and Europe.

Crude oil prices moved higher on Monday as encouraging economic data from the U.S., the Eurozone and China helped ease concerns about energy demand. West Texas Intermediate Crude oil futures for September settled at $41.01 a barrel, gaining $0.74 or 1.8 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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