RTTNews - The China stock market has closed higher now in three consecutive sessions, surging more than 210 points or 5.7 percent in that time on some positive economic news that continues to suggest that China may be emerging from the global economic slowdown. The Shanghai Composite Index closed above support at 3,460 points at a 15-month high, and now investors are looking for continued gains on Tuesday.

The Asian markets can look to considerable optimism in Tuesday's global forecast as a resurgence in commodities and resources is predicted to lead the bourses firmly to the upside. Financials and steel stocks also are expected to provide support. The European and U.S. markets finished with strong gains, and the Asian markets are tipped to follow that lead.

The SCI finished sharply higher on Monday, thanks to gains among the industrial stocks and commodities.

For the day, the index surged 50.53 points or 1.48 percent to close at 3,462.59 after trading between 3,398.45 and 3,465.17. The Shenzhen Index gained 186.27 points or 1.36 percent to end at 13,856.99 for a combined turnover of 358.9 billion yuan. Gainers outnumbered losers by 712 to 149 in Shanghai and 631 to 120 in Shenzhen.

Among the gainers, Inner Mongolian Baotou Steel Union rose by the daily limit of 10 percent, while Baoshan Iron and Steel Co. gained 4.88 percent, Wuhan Iron and Steel Co. climbed 6.50 percent, Yunnan Copper Co. gained 4.70 percent and Yunnan Chihong surged 7.55 percent.

Wall Street offers a broadly positive lead as stocks saw a significant rally on the first trading day of August, fueled by better-than-expected economic data. The major averages all finished in positive territory, with the NASDAQ and the S&P 500 moving past the key technical levels of 2,000 and 1,000, respectively.

Notable buying interest was generated by a report from the Institute for Supply Management that showed a much slower than expected pace of contraction in manufacturing activity in July. The report also showed notable improvements in new orders and production. The ISM said its index of activity in the manufacturing sector rose to 48.9 in July from 44.8 in June, although a reading below 50 indicates a contraction. Economists had been expecting a more modest increase to a reading of 46.5.

Separately, the U.S. Commerce Department revealed that construction spending rose 0.3 percent in June following a revised 0.8 percent slide in May. The figure surprised economists, who had expected a decline of 0.5 percent for the month. The unexpected increase was largely due to a 1.0 percent increase in public construction. While private construction slipped 0.1 percent, residential construction spending was up 0.5 percent.

Some positive sentiment was also generated by news that Ford (F) reported its first increase in U.S. sales in nearly two years in the month of July. Ford said its sales rose 2.3 percent compared to the same month a year ago due in part to the government's Cash for Clunkers program.

In earnings news today, Humana (HUM) and Tyson Foods (TSN) beat Wall Street estimates, while traders are looking forward to the release of results from homebuilding stalwarts Centex (CTX) and Pulte Homes (PHM) after the closing bell this afternoon.

The major averages all closed sharply higher, with the NASDAQ ending the session at its best level of the day. The Dow closed up by 114.95 points or 1.3 percent at 9,286.56, the NASDAQ climbed by 30.11 points or 1.5 percent to 2,008.61, and the S&P 500 rose by 15.15 points or 1.5 percent to 1,002.63. With the gains, the NASDAQ closed above the 2,000 level for the first time since October, while the S&P 500 closed above the 1,000 level for the first time since November. The Dow also set a nine-month closing high.

In economic news, the Chinese Purchasing Managers' Index for the manufacturing sector rose to a twelve-month high of 52.8 in July from 51.8 in June, a monthly survey from the CLSA Asia-Pacific Markets and Markit Economics showed Monday. A reading above 50 indicates expansion in the manufacturing sector. The indicator suggested that manufacturing output improved for the fourth consecutive month, expanding at the most marked rate since May 2008.

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