The China stock market has finished higher in three straight sessions, gaining nearly 60 points, or 1.8 percent, along the way. The Shanghai Composite now sits just above the 3,460-point plateau, although it may run out of steam on Friday.
The global outlook for Asian markets appears soft, with oil and technology shares likely to lead the decline. European markets were mixed and flat, while U.S. bourses ended lower. As a result, Asian markets are expected to show a balanced performance, splitting the difference.
On Thursday, the Shanghai Composite Index (SCI) finished modestly higher, buoyed by gains in financial shares and property stocks. Resource companies showed mixed results. The index gained 29.01 points, or 0.85 percent, closing at 3,461.50 after trading between 3,425.98 and 3,464.12. Meanwhile, the Shenzhen Composite Index rose 21.98 points, or 1.05 percent, to close at 2,112.90.
Among the active stocks, Industrial and Commercial Bank of China jumped 1.74 percent, Bank of China improved 1.36 percent, and China Construction Bank strengthened 1.22 percent. China Merchants Bank gained 1.31 percent, Agricultural Bank of China rose 1.21 percent, and China Life Insurance surged 2.06 percent.
In the resources sector, Jiangxi Copper advanced 0.83 percent, while Aluminum Corp of China (Chalco) lost 0.38 percent. Yankuang Energy fell 0.33 percent. China Petroleum and Chemical (Sinopec) rose 0.31 percent, Huaneng Power edged up 0.28 percent, and China Shenhua Energy declined 0.62 percent.
Property stocks also saw gains, with Gemdale rallying 1.28 percent, Poly Developments gaining 0.49 percent, and China Vanke adding 0.46 percent. PetroChina remained unchanged.
Wall Street provided a negative lead as major averages opened mixed on Thursday but quickly dropped, ending the day near session lows. The Dow Jones Industrial Average fell 234.44 points, or 0.64 percent, to close at 43,914.12. The NASDAQ lost 132.05 points, or 0.66 percent, finishing at 19,769.84, while the S&P 500 declined 32.94 points, or 0.54 percent, to end at 6,051.25.
The weakness on Wall Street followed profit-taking after a strong performance on Wednesday, when the tech-heavy NASDAQ closed above 20,000 for the first time ever. Negative sentiment also arose from a Labor Department report showing that U.S. producer prices increased more than expected in November.
While the Federal Reserve is still widely expected to lower interest rates next week, the recent data has raised concerns about the pace of rate cuts early next year.
In energy markets, oil futures closed lower Thursday after three days of gains. This followed the International Energy Agency’s forecast of excess oil supply next year. West Texas Intermediate (WTI) crude oil futures for January delivery fell $0.27, or 0.4 percent, to $70.02 a barrel.
*The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.*
https://www.nasdaq.com/articles/rally-may-stall-china-stock-market