Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has climbed higher in two straight sessions, collecting almost 70 points or 2.3 percent along the way. The Shanghai Composite Index now rests just above the 3,025-point plateau and it may add to its winnings on Monday.

The global forecast for the Asian markets is upbeat, with support expected from the technology and oil companies. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The SCI finished modestly higher on Friday as gains from the financials and resource stocks were offset by weakness from the properties and oil companies.

For the day, the index rose 11.85 points or 0.39 percent to finish at 3,027.02 after trading between 3,003.76 and 3,032.23. The Shenzhen Composite Index climbed 18.41 points or 1.08 percent to end at 1,725.39.

Among the actives, Industrial and Commercial Bank of China perked 0.19 percent, while Bank of China rose 0.22 percent, Agricultural Bank of China climbed 1.19 percent, China Construction Bank collected 0.43 percent, China Merchants Bank fell 0.31 percent, Bank of Communications improved 0.80 percent, China Life Insurance retreated 1.25 percent, Jiangxi Copper added 0.61 percent, Aluminum Corp of China (Chalco) rallied 1.16 percent, Yankuang Energy gained 0.43 percent, PetroChina sank 0.68 percent, China Petroleum and Chemical (Sinopec) dropped 0.80 percent, Huaneng Power tumbled 2.15 percent, China Shenhua Energy lost 0.57 percent, Gemdale slumped 0.93 percent, Poly Developments stumbled 1.94 percent and China Vanke declined 1.49 percent.

The lead from Wall Street is positive as the major averages opened flat on Friday but accelerated as the day progressed, sending the NASDAQ and S&P to record closing highs.

The Dow advanced 90.98 points or 0.23 percent to finish at 39,087.38, while the NASDAQ jumped 183.04 points or 1.14 percent to close at 16,274.94 and the S&P 500 rallied 40.81 points or 0.80 percent to end at 5,137.08. For the week, the NASDAQ shot up 1.7 percent and the S&P 500 rose 1.0 percent, but the Dow eased 0.1 percent.

The surge by the NASDAQ reflected substantial strength among computer hardware stocks following upbeat results from Dell (DELL), with the NYSE Arca Computer Hardware Index soaring to a record closing high.

In economic news, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at an accelerated rate in February. Also, the University of Michigan released revised data showing consumer sentiment unexpectedly deteriorated in February.

The soft data contributed to a downturn by treasury yields, which added to optimism about the Federal Reserve eventually cutting interest rates.

Oil prices rose to a four-month high on Friday, buoyed by reports that oil demand surged to a four-year high in 2023 and will hold near that level again this year. West Texas Intermediate Crude oil futures for April spiked $1.71 or 2.2 percent at $79.97 a barrel, the highest close since November 6, 2023.