Upper opening called for Chinese stock market

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(RTTNews) – China’s stock market has climbed higher in consecutive sessions, reaping more than 50 points or 1.6% along the way. The Shanghai Composite Index is now just above the 3,120 plateau and looks for another strong start to Friday’s trade.

The overall outlook for Asian markets is broadly positive, with support expected from technology, retail, oil and airline stocks. European and American markets were up and Asian stock exchanges should follow suit.

SCI ended slightly higher on Thursday after gains in property and resource stocks, while financials were mixed.

For the day, the index improved 15.64 points or 0.50% to end at 3,123.11 after trading between 3,079.48 and 3,133.28. The Shenzhen Composite Index added 10.25 points or 0.53% to end at 1,955.13.

Among assets, Industrial and Commercial Bank of China fell 0.21%, while Bank of China collected 0.31%, China Construction Bank added 0.50%, China Merchants Bank fell 0.90% , Bank of Communications and China Life Insurance both gained 0.41%, Jiangxi Copper strengthened 1.18%, Aluminum Corp of China (Chalco) climbed 1.01%, Yankuang Energy jumped 4.72% , PetroChina rose 0.75%, China Petroleum and Chemical (Sinopec) rose 0.92%, Huaneng Power fell 1.78%, China Shenhua Energy rose 0.60%, Gemdale gained 2 .00%, Poly Developments jumped 1.29%, China Vanke gained 0.93%, Beijing Capital Development gained 0.40% and China Fortune Land was unchanged.

Wall Street’s lead is bullish as major averages opened higher on Thursday and gained momentum and the day moved higher, ending near session highs.

The Dow Jones jumped 516.91 points or 1.61% to end at 32,637.10, while the NASDAQ jumped 305.91 points or 2.68% to end at 11,740.65 and the S&P 500 jumped 79.11 points or 1.99% to close at 4,057.84.

Wall Street’s strength came as traders continued to recover stocks to relatively reduced levels after recent weakness.

Adding to the positive sentiment, the Labor Department reported that initial jobless claims in the United States fell more than expected last week.

In other economic news, the Commerce Department said economic activity in the United States fell slightly more than expected in the first quarter of 2022. Additionally, the National Association of Realtors said pending home sales fell much more than expected in April.

Crude oil prices rose sharply on Thursday amid growing signs of tighter supply in the market ahead of the peak of the U.S. driving season which kicks off next week. A weak dollar and the possibility of EU sanctions on Russian oil also contributed to the spike in oil prices. West Texas Intermediate crude oil futures for July ended up $3.76 or 3.4% at $114.09 a barrel.

Closer to home, China will see April industrial earnings data later today; in March, profits increased by 8.5% year on year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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