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China stock market draws firm lead for Monday

China stock market draws firm lead for Monday

BEIJING: The win streak has hit three sessions now for the China stock market, which has collected almost 45 points or 1.5 percent in that span. The Shanghai Composite Index now rests just beneath the 3,200-point plateau, and the market is looking at additional support on Monday. The global forecast for the Asian markets is upbeat thanks to easing geopolitical concerns and a bump in the price of crude oil. The European and U.S. markets were up and the Asian bourses are expected to follow suit. The SCI finished modestly higher on Friday as gains from the financials and oil companies were tempered by weakness from the properties and shipping companies. For the day, the index picked up 13.52 points or 0.42 percent to finish at 3,196.70 after trading between 3,182.80 and 3,205.05. The Shenzhen Component Index gained 0.04 percent to end at 10,186.38. Among the actives, Agricultural Bank of China collected 0.63 percent, while Bank of China jumped 0.84 percent, Industrial and Commercial Bank of China gained 0.44 percent, Vanke shed 0.67 percent, Gemdale fell 0.16 percent, PetroChina added 0.12 percent and China Petroleum and Chemical (Sinopec) climbed 1.03 percent.

The lead from Wall Street is positive as stocks moved higher again on Friday, helping the major averages to hit record closing highs. The Dow added 96.97 points or 0.5 percent to 20,269.37, while the NASDAQ rose 18.95 points or 0.3 percent to 5,734.13 and the S&P gained 8.23 points or 0.4 percent to 2,316.10. For the week, the NASDAQ surged 1.2 percent, the Dow jumped 1 percent and the S&P 500 advanced 0.8 percent. The continued strength reflected optimism about corporate tax reform under President Donald Trump – who has proposed reducing the corporate income tax rate to 15 or 20 percent from the current rate of 35 percent. News that Trump spoke by phone with Chinese President Xi Jinping and agreed to honor the “one China” policy also eased concerns about tensions between the two economic superpowers. In economic news, the Labor Department said that import prices rose more than expected in January amid a jump in fuel prices. Also, export prices inched up in line with estimates. Crude oil futures rose sharply Friday as March West Texas Intermediate crude rose 86 cents or 1.6 percent to settle at $53.86 a barrel.