(RTTNews) - The China stock market on Tuesday ended the two-day winning streak in which it had gathered more than 30 points or 0.8 percent. The Shanghai Composite Index now sits just above the 3,565-point plateau although it's likely to bounce higher again on Wednesday.
The global forecast for the Asian markets is upbeat on hopes for improved coronavirus vaccine rollout and additional stimulus. 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 lower on Tuesday as losses from the resource stocks and energy producers were mitigated by support from the financials and properties.
For the day, the index sank 29.84 points or 0.83 percent to finish at 3,566.38 after trading between 3,553.02 and 3,603.15. The Shenzhen Composite Index dropped 23.13 points or 0.96 percent to end at 2,378.65.
Among the actives, Industrial and Commercial Bank of China climbed 1.17 percent, while Bank of China collected 0.62 percent, China Construction Bank rallied 2.81 percent, China Merchants Bank eased 0.13 percent, Bank of Communications jumped 1.55 percent, China Life Insurance rose 0.12 percent, Jiangxi Copper plummeted 5.01 percent, Aluminum Corp of China (Chalco) plunged 3.62 percent, PetroChina and China Petroleum and Chemical (Sinopec) both were up 0.24 percent, China Shenhua Energy dropped 0.95 percent, Gemdale surged 4.31 percent, Poly Developments gained 0.88 percent, China Vanke was up 0.06 percent, Beijing Capital Development rallied 2.90 percent and Yanzhou Coal was unchanged.
The lead from Wall Street is positive as stocks opened higher on Tuesday and remained in the green throughout the session, butting into last week's losses.
The Dow added 116.26 points or 0.38 percent to finish at 30,930.52, while the NASDAQ spiked 198.68 points or 1.53 percent to end at 13,197.18 and the S&P 500 gained 30.66 points or 0.81 percent to close at 3,798.91.
The markets benefited from continued optimism about additional stimulus as well as a faster rollout of coronavirus vaccines under incoming President Joe Biden, who is set to take office later today.
Traders kept an eye on remarks from Treasury Secretary nominee Janet Yellen, who called for additional stimulus to address the impact of the ongoing coronavirus pandemic, arguing the government needs to act big.
In corporate news, a drop by shares of Goldman Sachs (GS) limited the upside for the Dow after the financial giant slumped by 2.3 percent despite reporting better than expected Q4 results. Bank of America (BAC) also sank after reporting better than expected Q4 earnings but missed on revenue.
Crude oil prices rose Tuesday, riding the dollar's weakness and expectations of more economic stimulus in the U.S. West Texas Intermediate Crude oil futures for February ended up $0.62 or 1.2 percent at $52.98 a barrel.
Closer to home, China will see the latest figures for loan prime rates later today; previously, the one-year loan rate was 3.85 percent and the five-year rate was 4.65 percent.
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