Rebound Predicted For China Stock Market

(RTTNews) - The China stock market turned lower again on Thursday, one day after ending the four-day losing streak in which it had slumped more than 85 points or 2.3 percent. The Shanghai Composite Index now sits just above the 3,875-point plateau although it's likely to bounce back to the upside again on Friday.

The global forecast for the Asian markets is positive on bargain hunting and easing oil prices and treasury yields. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The SCI finished modestly lower on Thursday as losses from the property, construction, retail, steel and automobile sectors were tempered by gains from the technology companies.

For the day, the index sank 16.00 points or 0.41 percent to finish at 3,875.60 after trading between 3,866.89 and 3,898.84. The Shenzhen Composite Index fell 5.09 points or 0.21 percent to end at 2,471.39.

The lead from Wall Street is firm as the major averages opened solidly higher on Thursday and remained in the green throughout the session.

The Dow jumped 316.14 points or 0.61 percent to finish at 51,778.04, while the NASDAQ surged 439.88 points or 1.69 percent to close at 26,089.55 and the S&P 500 rallied 85.95 points or 1.14 percent to end at 7,637.76.

Stocks surged early in the session amid an extended pullback by the price of crude oil after supply-related concerns eased amid Saudi Arabia's efforts to get its vital oil pipeline back in operation. West Texas Intermediate crude for October delivery was down $0.60 or 0.59 percent at $101.83 per barrel.

Treasury yields have moved to the downside along with crude oil prices, with the yield on the benchmark ten-year note slumping after ending the previous session roughly flat.

Traders shrugged off Wednesday's widely expected interest rate hike by the Federal Reserve, even though projections point to at least one more rate hike before the end of the year.

In U.S. economic news, the Labor Department showed an unexpected decline in first-time claims for U.S. unemployment benefits last week.