BEIJING: The China stock market picked up just a single point on Tuesday – but that was enough to extend its winning streak to five days, gathering almost 65 points or 2 percent along the way. The Shanghai Composite Index remains just above the 3,215-point plateau, and the market is looking at continued support on Wednesday. The global forecast for the Asian markets is firm again, thanks to comments from FOMC Chair Janet Yellen, plus support from crude oil prices. The European markets were flat and the U.S. bourses were up – and the Asian markets figure to split the difference. The SCI finished barely higher on Tuesday following mixed performances from the financials and properties, while the oil companies were soft.
For the day, the index added 1.09 points or 0.03 percent to finish at 3,217.93 after trading between 3,205.29 and 3,219.40. The Shenzhen Component Index dipped 0.06 percent to end at 10,264.92. Among the actives, Bank of China shed 0.28 percent, while Industrial and Commercial Bank of China collected 0.22 percent, Vanke added 0.67 percent, Gemdale lost 0.72 percent, PetroChina fell 0.24 percent, China Petroleum and Chemical (Sinopec) dipped 0.51 percent and Zijin Mining climbed 0.83 percent. The lead from Wall Street is positive as stocks moved mostly higher on Tuesday as the major averages again hit new record closing highs.
The Dow added 92.25 points or 0.5 percent to 20,504.41, while the NASDAQ rose 18.62 points or 0.3 percent to 5,782.57 and the S&P gained 9.33 points or 0.4 percent to 2,337.58. The higher close followed Yellen’s monetary policy testimony before the Senate Banking Committee. She reiterated that the Fed expects the evolution of the economy to warrant further gradual increases in interest rates to achieve and maintain its employment and inflation objectives. In economic news, the Labor Department said that U.S. producer prices rose by more than expected in January. Core prices also rose more than expected. Crude oil futures were higher Tuesday as March WTI oil gained 27 cents or 0.5 percent to $53.20/bbl today.
