China Stock Market Poised To Add To Its Winnings

(RTTNews) - The China stock market has moved higher in two straight sessions, collecting almost 70 points or 2.3 percent along the way. The Shanghai Composite Index now sits just above the 3,080-point plateau and it's looking at another green light for Tuesday's trade.

The global forecast for the Asian markets is upbeat on bargain hunting after several days of volatility and heavy selling, while stability in the bond markets adds to the positive sentiment. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly higher on Monday following gains from the insurance companies, mixed performances from the financial shares and weakness from the properties and resource stocks.

For the day, the index gained 12.96 points or 0.42 percent to finish at 3,084.94 after trading between 3,052.71 and 3,087.19. The Shenzhen Composite Index improved 13.48 points or 0.68 percent to end at 1,997.81.

Among the actives, Industrial and Commercial Bank of China perked 0.23 percent, while Bank of China fell 0.33 percent, China Construction Bank rose 0.18 percent, China Merchants Bank eased 0.19 percent, Bank of Communications dipped 0.22 percent, China Life Insurance collected 1.50 percent, Jiangxi Copper shed 0.44 percent, Aluminum Corp of China (Chalco) lost 0.71 percent, Yankuang Energy tumbled 2.02 percent, PetroChina was up 0.19 percent, China Petroleum and Chemical (Sinopec) dropped 0.92 percent, Huaneng Power tanked 2.34 percent, China Shenhua Energy skidded 1.14 percent, Gemdale sank 0.97 percent, Poly Developments declined 0.93 percent and China Vanke plunged 2.47 percent.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Monday and stayed that way throughout the session.

The Dow surged 550.99 points or 1.86 percent to finish at 30,185.82, while the NASDAQ soared 354.41 points or 3.43 percent to end at 10.675.80 and the S&P 500 jumped 94.88 points or 2.65 percent to close at 3,677.95.

An early pullback by treasury yields fueled the buying interest, although yields regained ground over the course of the session. The markets also benefitted from strong earnings news from financial giant Bank of America (BAC).

The strength also followed news that the U.K. government is reversing course on previously announced fiscal plans that contributed to turmoil in the global bond markets.

In economic news, the Federal Reserve Bank of New York reported that regional manufacturing activity contracted more than expected in October.

Crude oil futures slumped on Monday, extending losses from the previous session as worries about a recession weighed on the outlook for energy demand and pushed down oil prices. West Texas Intermediate Crude oil futures for November eased $0.15 or 0.2 percent at $85.46 a barrel.