China Bourse Tipped To Extend Friday's Gains

(RTTNews) - The China stock market on Friday wrote a finish to the three-day losing streak in which it had stumbled more than 50 points or 1.6 percent. The Shanghai Composite Index now sits just beneath the 3,040-point plateau and it may add to its winnings on Monday.

The global forecast for the Asian markets is upbeat on falling treasury yields and optimism over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets are tipped to follow the latter lead.

The SCI finished slightly higher on Friday as gains from the resource and energy companies were tempered by mixed performances from the financials and properties.

For the day, the index picked up 3.88 points or 0.13 percent to finish at 3,038.93 after trading between 3,026.96 and 3,055.42. The Shenzhen Composite Index fell 4.74 points or 0.24 percent to end at 1,966.93.

Among the actives, Bank of China collected 0.66 percent, while China Construction Bank rose 0.36 percent, China Merchants Bank retreated 1.63 percent, China Life Insurance declined 1.48 percent, Jiangxi Copper perked 0.26 percent, Aluminum Corp of China (Chalco) was up 0.24 percent, Yankuang Energy strengthened 1.36 percent, PetroChina gained 0.58 percent, China Petroleum and Chemical (Sinopec) jumped 1.64 percent, Huaneng Power added 0.62 percent, China Shenhua Energy climbed 1.22 percent, Gemdale plunged 3.03 percent, Poly Developments advanced 1.02 percent, China Vanke increased 0.43 percent, China Fortune Land sank 0.41 percent and Industrial and Commercial Bank of China and Bank of Communications were unchanged.

The lead from Wall Street is broadly positive as the major averages opened barely in the red on Friday but quickly moved higher and accelerated as the day progressed.

The Dow surged 748.96 points or 2.47 percent to finish at 31,082.56, while the NASDAQ soared 244.92 points or 2.31 percent to end at 10,859.72 and the S&P 500 jumped 86.97 points or 2.37 percent to close at 3,752.75.

For the week, the NASDAQ surged 5.2 percent, the Dow spiked 4.9 percent and the S&P accelerated 4.7 percent.

The rally on Wall Street came as treasury yields showed a notable downturn after extending a recent surge in early trading. The yield on the benchmark ten-year note finished the day modestly lower after spiking to a fifteen-year intraday high earlier in the session.

The pullback by yields came after a report from the Wall Street Journal suggested Fed officials are likely to debate whether and how to signal plans for a smaller rate hike in December following a widely expected 75 basis point increase in early November.

Crude oil prices climbed higher on Friday amid hopes demand for oil in China will see an increase soon. A likely ban on Russian oil by the European Union and a weak dollar also fueled oil's uptick. West Texas Intermediate Crude oil futures for December ended higher by $0.54 or 0.6 percent at $85.05 a barrel.