The global forecast for the Asian markets is broadly positive on optimism that the Covid-19 curve may be flattening
Ahead of Monday’s holiday for the Qingming Festival, the China stock market had alternated between positive and negative finishes through the last seven trading days since the end of the two-day winning streak in which it had risen more than 120 points or 4.5 percent. The Shanghai Composite Index now rests just above the 2,760-point plateau and it’s got a firm lead for Tuesday’s trade.
The global forecast for the Asian markets is broadly positive on optimism that the Covid-19 curve may finally be flattening. The European and U.S. markets were firmly higher and the Asian markets are also tipped to open in the green.
The SCI finished modestly lower on Friday following losses from the financial shares, property stocks and oil and insurance companies.
For the day, the index sank 16.65 points or 0.60 percent to finish at 2,763.99 after trading between 2,754.07 and 2,780.59. The Shenzhen Composite Index slid 7.98 points or 0.47 percent to end at 1,689.57.
Among the actives, Industrial and Commercial Bank of China dropped 0.96 percent, while Bank of China eased 0.29 percent, China Construction Bank shed 0.47 percent, China Merchants Bank fell 0.57 percent, China Life Insurance skidded 1.20 percent, Ping An Insurance dropped 1.16 percent, PetroChina tumbled 1.70 percent, China Petroleum and Chemical (Sinopec) retreated 1.98 percent, China Shenhua Energy sank 0.80 percent, Gemdale advanced 0.93 percent, Poly Developments slid 0.40 percent and China Vanke dipped 0.41 percent.
The lead from Wall Street is upbeat as stocks opened higher on Monday and picked up steam as the day progressed.
The Dow surged 1,627.46 points or 7.73 percent to 22,679.99, while the NASDAQ soared 540.15 points or 7.33 percent to 7,913.24 and the S&P 500 spiked 175.03 points or 7.03 percent to end at 2,663.68.
The rally on Wall Street came as the reported death tolls in some of the world’s coronavirus hot spots showed signs of easing over the weekend. The number of coronavirus-related deaths in New York State fell to 594 on Sunday from 630 on Saturday, reflecting the first daily decrease.
Reports of decreases in the number of new infections and deaths in European countries like Italy and Spain also generated positive sentiment.
Crude oil prices drifted lower on Monday after moving up in the previous two sessions due to the postponement of a meeting between leading oil producers. West Texas Intermediate crude oil futures for June ended down $2.26 or 8 percent at $26.08 a barrel.