(RTTNews) – The China stock market has moved higher in two straight sessions, gathering almost 80 points or 2.3 percent along the way. The Shanghai Composite Index now rests just above the 3,475-point plateau although it’s likely to open under pressure on Tuesday.
The global forecast for the Asian markets suggest consolidation, with investors expected to use a lack of catalysts as a reason to lock in gains following recent strength. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.
The SCI finished sharply higher on Monday following gains from the financial shares and property stocks, while the resource companies were mixed.
For the day, the index jumped 50.93 points or 1.49 percent to finish at 3,477.55 after trading between 3,414.36 and 3,479.01. The Shenzhen Composite Index spiked 54.14 points or 2.44 percent to end at 2,27436.
Among the actives, Industrial and Commercial Bank of China rose 0.18 percent, while China Construction Bank was up 0.14 percent, China Merchants Bank soared 4.08 percent, Bank of Communications collected 0.20 percent, China Life Insurance climbed 1.27 percent, Jiangxi Copper surged 5.97 percent, Aluminum Corp of China (Chalco) added 0.47 percent, Yanzhou Coal plunged 4.21 percent, PetroChina fell 0.46 percent, China Petroleum and Chemical (Sinopec) sank 0.67 percent, Baoshan Iron lost 0.48 percent, Gemdale gathered 1.58 percent, Poly Developments perked 0.55 percent, China Vanke improved 0.45 percent, Beijing Capital Development spiked 2.02 percent and Bank of China was unchanged.
The lead from Wall Street is negative as stocks opened in the red and stayed there throughout the session, pulling back from recent highs.
The Dow shed 123.04 points or 0.36 percent to finish at 34,077.63, while the NASDAQ dropped 137.58 points or 0.98 percent to end at 13,914.77 and the S&P 500 sank 22.21 points or 0.53 percent to close at 4,163.26.
The lower open on Wall Street was profit taking in reaction to some of the markets hitting fresh record closing highs last week.
Mixed earnings news didn’t give investors a reason to start buying, so the markets saw little movement after their slow start.
Crude oil futures ended higher Monday as prices moved higher amid expectations of a drop in global crude supply. West Texas Intermediate Crude oil futures for May ended higher by $0.25 or 0.4 percent at $63.38 a barrel.