The China stock market has ticked higher in back-to-back trading days, gathering almost 30 points or 1 percent along the way. The Shanghai Composite Index now rests just above the 3,190-point plateau although it may spin its wheels on Wednesday.
The global forecast for the Asian is slightly soft, with concerns over U.S. treasury yields tempered by support from crude oil. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The SCI finished modestly higher on Tuesday as gains from the oil companies were dented by weakness from the insurance stocks and a mixed picture from the financial and property sectors.
For the day, the index gained 18.09 points or 0.57 percent to finish at 3,192.12 after trading between 3,164.52 and 3,192.81. The Shenzhen Composite Index advanced 16.63 points or 0.91 percent to end at 1,839.88.
Among the actives, Agricultural Bank of China lost 0.51 percent, while Bank of China shed 0.26 percent, Industrial and Commercial Bank of China collected 0.33 percent, Bank of Communications slid 0.48 percent, Ping An Insurance eased 0.20 percent, PetroChina added 0.13 percent, China Petroleum and Chemical (Sinopec) gained 0.28 percent, China Vanke dropped 0.68 percent, Gemdale perked 0.62 percent and China Life and China Construction Bank were unchanged.
The lead from Wall Street is negative as stocks moved lower on Tuesday, as profit taking erased gains from previous sessions.
The Dow slumped 193.00 points or 0.78 percent to 24,706.41, the NASDAQ fell 59.69 points or 0.81 percent to 7,351.63 and the S&P 500 slid 18.68 points or 0.68 percent to 2,711.45.
The weakness came when traders reacted to a jump in U.S. treasury yields, with the yield on the benchmark ten-year note surging up to its highest levels since 2011.
In economic news, the Commerce Department said retail sales increased in line with estimates in April. Also, the National Association of Home Builders noted an unexpected improvement in homebuilder confidence in May.
Crude oil futures rose Tuesday, even as U.S. stocks and other commodities melted down. Oil has surged to four-year highs amid speculation that OPEC will continue to cut production. West Texas Intermediate oil for June ended up 35 cents or 0.5 percent to finish at $71.31/bbl.
by P2PNews Staff Writer