RTTNews - The winning streak has reached four sessions for the China stock market, which has jumped more than 220 points or 6.3 percent en route to a fresh 14-month closing high. The Shanghai Composite Index closed above the 3,430-point plateau, and now investors are looking for the upward trend to continue when the market opens for business on Tuesday.
The global forecast for the Asian bourses again provides little in the way of guidance, with financial and property stocks expected to post mild gains and nudge the markets into positive territory. Some better than expected economic news out of the United States could add to sentiment, although it also may wan on mixed corporate results. The European markets were modestly higher and the U.S. bourses tipped slightly higher, and the Asian markets are predicted also to move slightly higher.
The SCI finished sharply higher on Monday, riding a 203 percent jump in debutant Sichuan Expressway Co in the first Shanghai IPO in nine months. Financials, steel stocks and commodities also finished higher.
For the day, the index surged 62.61 points or 1.86 percent to close at 3,435.21 after trading between 3,376.29 and 3,435.93. The Shenzhen Index was up 211.68 points or 1.56 percent to finish at 13,743.4 for a combined turnover of 352.33 billion yuan. Gainers outnumbered losers by 753 to 106 in Shanghai and 626 to 109 in Shenzhen.
Among the gainers, Hunan Chenzhou Mining Group and Yunnan Copper both were up by the 10 percent daily limit, while Chalco surged 8.05 percent, Baosteel jumped 5.49 percent, Wuhan Steel added 6.32 percent, Industrial and Commercial Bank of China gained 1.53 percent, Bank of China was up 2.44 percent and Ping An Insurance rose 3.16 percent.
The lead from Wall Street is flat with perhaps a touch of upside as stocks staged a modest rally in late session trading after experiencing a largely lackluster session on Monday. The major averages were all able to finish in positive territory by mild margins on another day marred by low volume.
On the economic front, the Commerce Department released a report showing that new home sales in the month of June increased by much more than expected. New home sales jumped by 11 percent, the sharpest increase in nearly nine years.
The Commerce Department showed that new home sales rose to an annual rate of 384,000 in June from the revised May rate of 346,000. Economists had expected sales to rise to 352,000 from the 342,000 originally reported for the previous month.
The stronger than expected sales growth came amid a pullback in prices, with the median sales price of new houses sold in June falling 5.8 percent to $206,200 from $219,000 in the previous month. The median sales price had increased for two consecutive months.
In earnings news, RadioShack (RSH), Tellabs (TLAB) and Corning (GLW) reported earnings that beat Wall Street estimates, while Verizon (VZ) and Honeywell (HON) reported results that were in-line with expectations. Aetna (AET), however, was one of the major firms whose quarterly earnings fell short of estimates.
The major averages showed a notable move to the upside going into the close, ending the session just above the unchanged line. The Dow closed up by 15.27 points or 0.2 percent at 9,108.51, the NASDAQ climbed by 1.93 points or 0.1 percent to 1,967.89 and the S&P 500 rose by 2.92 points or 0.3 percent at 982.18.
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