(RTTNews) – The China stock market on Friday halted the three-day losing streak in which it had stumbled almost 80 points or 2.5 percent. The Shanghai Composite Index now rests just shy of the 3,420-point plateau and it may add to its winnings on Monday.
The global forecast for the Asian markets is upbeat on optimism for economy recovery and support from crude oil prices. The European and U.S. markets were up on Friday and the Asian bourses are expected to follow that lead.
The SCI finished sharply higher on Friday following gains from the resource stocks, properties and oil companies, while the financials were mixed.
For the day, the index spiked 54.74 points or 1.63 percent to finish at 3,418.33 after trading between 3,373.32 and 3,423.22. The Shenzhen Composite Index surged 48.41 points or 2.23 percent to end at 2,214.81.
Among the actives, Industrial and Commercial Bank of China fell 0.19 percent, while Bank of China dropped 0.91 percent, China Construction Bank collected 0.42 percent, China Merchants Bank climbed 1.16 percent, Bank of Communications added 0.65 percent, China Life Insurance rallied 2.52 percent, Jiangxi Copper jumped 1.80 percent, Aluminum Corp of China (Chalco) accelerated 1.60 percent, Yanzhou Coal soared 2.41 percent, PetroChina perked 0.23 percent, China Petroleum and Chemical (Sinopec) rose 0.24 percent, China Shenhua Energy was up 0.17 percent, Gemdale gained 0.50 percent, Poly Developments increased 0.07 percent, China Vanke improved 0.56 percent, China Fortune Land surged 4.32 percent and Minsheng Bank was unchanged.
The lead from Wall Street is broadly positive as stocks opened higher on Friday and largely remained in the green throughout the session, accelerating into the close.
The Dow surged 453.40 points or 1.39 percent to finish at 33,072.88, while the NASDAQ spiked 161.04 points or 1.24 percent to end at 13,138.72 and the S&P 500 jumped 65.02 points or 1.66 percent to close at 3,974.54. For the week, the Dow rose 1.4 percent, the NASDAQ fell 0.6 percent and the S&P gained 1.6 percent.
The strength on Wall Street reflected optimism about the economy reopening after President Joe Biden doubled his goal for the administration of coronavirus vaccines in his first 100 days in office – now aiming for 200 million.
Banking stocks helped lead the way higher after the Federal Reserve announced restrictions on bank holding company dividends and share repurchases will end for most firms after June 30.
In economic news, the Commerce Department said personal income plunged by 7.1 percent in February after skyrocketing 10.1 percent in January. Also, the University of Michigan said U.S. consumer sentiment improved more than estimated in March.
Crude oil prices rose sharply Friday on concerns it might take several weeks to dislodge the giant container ship stuck in the Suez Canal. West Texas Intermediate Crude oil futures for May ended up $2.41 or 4.1 percent at $60.97 a barrel.
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