China Shares Have Solid Lead For Wednesday

(RTTNews) - The China stock market has moved higher in three straight sessions, collecting almost 60 points or 1.5 percent along the way. The Shanghai Composite Index now sits just above the 4,0925-point plateau and it's expected to open higher again on Wednesday.

The global forecast for the Asian markets is upbeat on tumbling crude oil prices and hopes for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The SCI finished modestly higher again on Tuesday as gains from the financial, resource and property stocks were capped by weakness from the energy companies.

For the day, the index advanced 38.07 points or 0.95 percent to finish at the daily high of 4,026.63 after trading as low as 3,992.41. The Shenzhen Composite Index jumped 37.88 points or 1.42 percent to end at 2,704.43.

Among the actives, Industrial and Commercial Bank of China climbed 1.22 percent, while Bank of China gained 0.60 percent, Agricultural Bank of China strengthened 1.81 percent, China Merchants Bank rose 0.38 percent, Bank of Communications improved 0.73 percent, China Life Insurance collected 0.67 percent, Jiangxi Copper vaulted 1.76 percent, Aluminum Corp of China (Chalco) jumped 2.47 percent, Yankuang Energy tumbled 1.96 percent, PetroChina slumped 1.32 percent, China Petroleum and Chemical (Sinopec) dropped 0.86 percent, Huaneng Power added 0.43 percent, China Shenhua Energy retreated 1.42 percent, Gemdale rallied 2.87 percent, Poly Developments spiked 3.84 percent and China Vanke accelerated 2.81 percent.

The lead from Wall Street is firm as the major averages opened solidly in the green on Tuesday and continued to climb as the day progressed, ending at session highs.

The Dow jumped 317.74 points or 0.66 percent to finish at 48,535.99, while the NASDAQ soared 455.35 points or 1.96 percent to end at 23,639.08 and the S&P 500 rallied 81.14 points or 1.18 percent to close at 6,967.38.

The continued strength on Wall Street came amid optimism about a second round of talks between the U.S. and Iran over ending the Middle East conflict.

The news about potential negotiations contributed to a sharp pullback by the price of crude oil. In addition, the International Energy Agency's report cautioning crude oil "demand destruction" weighed on prices. West Texas Intermediate crude for May delivery was down $7.18 or 7.25 percent at $91.90 per barrel.

Adding to the positive sentiment, a report from the Labor Department showed producer prices in the U.S. increased much less than expected last month.