China Stock Market May Challenge Resistance At 3,400 Points
(RTTNews) - The China stock market on Friday halted the two-day losing streak in which it had fallen almost 90 points or 2.9 percent. The Shanghai Composite Index now sits just above the 3,380-point plateau and it's expected to open in the green again on Monday.
The global forecast for the Asian markets is upbeat on firm economic data from the United States. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.
The SCI finished modestly higher on Friday as gains from the financial shares and insurance companies were capped by weakness from the property sector.
For the day, the index collected 16.78 points or 0.50 percent to finish at 3,380.68 after trading between 3,358.00 and 3,393.92. The Shenzhen Composite Index soared 24.23 points or 1.09 percent to end at 2,249.95.
Among the actives, Industrial and Commercial Bank of China rose 0.20 percent, while China Construction Bank collected 0.32 percent, China Merchants Bank added 0.67 percent, China Life Insurance jumped 1.64 percent, Ping An Insurance advanced 0.84 percent, China Shenhua Energy fell 0.25 percent, Gemdale gained 0.53 percent, Poly Developments lost 0.54 percent, China Vanke sank 0.44 percent and China Petroleum and Chemical (Sinopec), PetroChina, Bank of China and Bank of Communications all were unchanged.
The lead from Wall Street is positive as stocks spent most of Friday in the green, picking up steam as the day progressed.
The Dow jumped 190.60 points or 0.69 percent to finish at 27,930.33, while the NASDAQ added 46.85 points or 0.42 percent to end at 11,311.80 and the S&P 500 rose 11.65 points or 0.34 percent to close at 3,397.16. For the week, the Dow was flat, the NASDAQ soared 2.7 percent and the S&P gained 0.7 percent.
The strength on Wall Street came after IHS Markit said U.S. business activity expanded at the fastest pace in over a year in August. Also, the National Association of Realtors said existing home sales in the U.S. continued to soar in July.
Significant strength was also visible among computer hardware stocks. Apple (AAPL) helped to lead the sector higher, with the tech giant surging 5.2 percent to a new record closing high.
Oil prices tumbled on Friday as the latest Euro zone flash purchasing managers' index for August dented hopes of a V-shaped recovery from the bloc's deepest economic downturn on record. West Texas Intermediate (WTI) crude futures were down 46 cents or 1.08 percent at $42.27.
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