China Stock Market May Stop The Bleeding On Wednesday

(RTTNews) - The China stock market has finished lower in two straight sessions, sinking more than 10 points or 0.3 percent along the way. The Shanghai Composite Index now sits just above the 3,305-point plateau although it's expected to find traction on Wednesday.

The global forecast for the Asian markets is upbeat, with oil, telecom and technology stocks expected to lead the way. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished slightly lower on Tuesday as losses from the resource stocks were mitigated by support from the financials and properties.

For the day, the index shed 8.71 points or 0.26 percent to finish at 3,306.72 after trading between 3,279.83 and 3,329.39. The Shenzhen Composite Index lost 11.04 points or 0.51 percent to end at 2,147.29.

Among the actives, Industrial and Commercial Bank of China climbed 1.28 percent, while Bank of China advanced 0.93 percent, China Construction Bank collected 0.67 percent, China Merchants Bank strengthened 1.59 percent, Bank of Communications improved 1.01 percent, China Life Insurance soared 4.22 percent, Jiangxi Copper tanked 2.57 percent, Aluminum Corp of China (Chalco) tumbled 1.85 percent, Yankuang Energy rallied 1.26 percent, PetroChina eased 0.18 percent, Huaneng Power spiked 3.29 percent, China Shenhua Energy added 0.45 percent, Gemdale rose 0.16 percent, Poly Developments perked 1.31 percent, Beijing Capital Development was up 0.20 percent and China Vanke and China Petroleum and Chemical (Sinopec) were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Tuesday and remained solidly in the green throughout the day, closing near session highs.

The Dow surged 641.47 points or 2.15 percent to finish at 30,530.25, while the NASDAQ spiked 270.95 points or 2.51 percent to end at 11,069.30 and the S&P 500 jumped 89.95 points or 2.45 percent to close at 3,764.79.

The rally on Wall Street came as traders picked up stocks at reduced levels following recent weakness in the markets. Bargain hunting also contributed to strength in the overseas markets that carried over onto Wall Street early in the day.

In economic news, the National Association of Realtors noted another steep drop in U.S. existing home sales in May.

Crude oil prices bounced higher again Tuesday, recovering from the selloff in the previous session that was fueled by recession concerns. West Texas intermediate for August delivery jumped $1.53 or 1.4 percent to $109.52 a barrel.