China Bourse May Reverse Wednesday's Losses

(RTTNews) - The China stock market headed south again on Wednesday, one day after ending the three-day losing streak in which it had fallen more than 100 points or 2.5 percent. The Shanghai Composite Index now sits just above the 4,160-point plateau although it may find renewed support on Thursday.

The global forecast for the Asian markets is broadly positive, thanks to sinking crude oil prices and support from the technology sectors. The European and U.S. markets were sharply higher on Wednesday and the Asian bourses are expected to follow that lead.

The SCI finished slightly lower on Wednesday as losses from the financial shares and property stocks were mitigated by support from the resource companies.

For the day, the index dipped 7.35 points or 018 percent to finish at 4,162.18 after trading between 4,139.97 and 4,169.85. The Shenzhen Composite Index fell 8.00 points or 0.28 percent to end at 2,869.17.

Among the actives, Industrial and Commercial Bank of China contracted 1.79 percent, while Bank of China dipped 0.27 percent, Agricultural Bank of China stumbled 2.42 percent, China Merchants Bank slipped 0.54 percent, Bank of Communications slumped 1.50 percent, China Life Insurance lost 0.49 percent, Jiangxi Copper jumped 1.90 percent, Aluminum Corp of China (Chalco) rallied 2.80 percent, Yankuang Energy declined 1.66 percent, PetroChina added 0.61 percent, China Petroleum and Chemical (Sinopec) shed 0.58 percent, Huaneng Power plunged 4.48 percent, China Shenhua Energy dipped 0.15 percent, Gemdale tumbled 1.75 percent, Poly Developments retreated 1.46 percent and China Vanke tanked 2.96 percent.

The lead from Wall Street is strong as the major averages opened slightly higher on Wednesday but accelerated throughout the day, ending at session highs.

The Dow spiked 645.47 points or 1.31 percent to finish at 50,009.35, while the NASDAQ jumped 399.65 points or 1.54 percent to end at 26,270.36 and the S&P 500 climbed79.36 points or 7,432.97.

The rally on Wall Street came on a steep drop by treasuries yields, which pulled back sharply, with the yield on the benchmark ten-year note plunging from its highest levels in well over a year.

The sharp drop in crude oil prices also contributed to the rise on Wall Street, thanks to increasing diplomatic measures to secure an agreement to end their hostilities between the United States and Iran. West Texas Intermediate crude for July delivery was down $5.89 or 5.66 percent at $98.26 per barrel.

Optimism about earnings news from Nvidia (NVDA) may also have generated buying interest, as the chipmaker was due to report its first quarter results after the close of trading.

In fact, Nvidia decisively beat expectations on both the top and bottom lines, likely giving the Asian markets a solid boost.