China Stock Market May Crack 3,500-Point Level

(RTTNews) - The China stock market bounced higher again on Thursday, one day after snapping the two-day winning streak in which it had improved more than 30 points or 0.9 percent. The Shanghai Composite Index now sits just above the 3,460-point plateau and it's looking at a firm start again on Friday.

The global forecast for the Asian markets is positive thanks to better than expected U.S. employment data. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The SCI finished slightly higher on Thursday following mixed performances from the resource stocks and properties, while the financial sector was soft.

For the day, the index rose 6.36 points or 0.18 percent to finish at 3,461.15 after trading between 3,446.97 and 3,463.62. The Shenzhen Composite Index gained 19.67 points or 0.95 percent to end at 2,084.67.

Among the actives, Industrial and Commercial Bank of China dropped 0.52 percent, while Bank of China was down 0.53 percent, Agricultural Bank of China retreated 0.50 percent, China Merchants Bank and China Vanke both shed 0.62 percent, Bank of Communications slumped 0.49 percent, China Life Insurance was up 0.07 percent, Jiangxi Copper perked 0.17 percent, Aluminum Corp of China (Chalco) dipped 0.14 percent, Yankuang Energy slid 0.49 percent, PetroChina fell 0.58 percent, China Petroleum and Chemical (Sinopec) lost 0.53 percent, China Shenhua Energy tanked 2.74 percent, Gemdale sank 0.79 percent, Poly Developments rose 0.37 percent and Huaneng Power was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Thursday and remained in the green throughout the shortened session ahead of the July 4 holiday.

The Dow rallied 344.11 points or 0.77 percent to finish at 44,828.53, while the NASDAQ jumped 207.97 points or 1.02 percent to close at 20,601.10 and the S&P 500 gained 51.93 points or 0.83 percent to end at 6,279.35.

The continued strength on Wall Street followed the release of the Labor Department report showing U.S. employment increased more than expected in June. The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May.

Traders reacted positively to the data even though the stronger than expected job growth is likely to reduce the chances of a near-term interest rate cut by the Federal Reserve.

Crude oil settled lower on Thursday as excess U.S. inventories and an upcoming OPEC+ meeting triggered supply side concerns. West Texas Intermediate crude for August delivery closed down by $0.45, to settle at $67 per barrel.