The China stock market has ended higher now in three straight sessions, adding more than 150 points or 6 percent in the process. The Shanghai Composite Index broke through resistance at 2,550 points, and now analysts say that the market could test the 2,600-point plateau at the opening of trade on Tuesday.

The global forecast for the Asian markets continues to be uniformly positive, with forecasts calling for extended gains throughout the region. Better than expected corporate results and economic data from the United States provide positive sentiment, with financials and commodities expected to continue to rise. The European and U.S. markets ended sharply higher, and the Asian bourses are predicted to follow suit - although some profit taking could take place.

The SCI finished sharply higher again on Monday, thanks to heavy gains among the property stocks, financials and commodities.

For the day, the index climbed 82.34 points or 3.32 percent to close at 2,559.91 after trading between 2,486.23 and 2,560.54. The Shenzhen Index rose 397.15 points or 4.18 percent to finish at 9,899.67 for a combined turnover of 221.65 billion yuan. Gainers outnumbered losers by 919 to 13 in Shanghai and 793 to 8 in Shenzhen.

Among the gainers, Shan Xi Coking, Datong Coal Industry, Shanxi Antai Group, Hongxing Iron & Steel, Xinjiang Ba Yi Iron & Steel and Guangzhou Iron & Steel all rose by the 10 percent daily limit, while China Shenhua added 7.93 percent, China Coal Energy was up 6.53 percent, China Vanke rose 3.77 percent, Poly Real Estate Group was up 2.94 percent, Gemdale gained 4.06 percent, Baoshan Iron & Steel rose 4.5 percent, Handan Iron & Steel gained 5.3 percent and Chalco was up 4.1 percent.

The lead from Wall Street is broadly positive as stocks moved sharply higher during trade on Monday, with traders reacting to the release of some better than expected economic data. The major averages extended the upward move seen last week, rising to multi-month closing highs. The strength in the markets came as the better than expected data generated some optimism about the outlook for the economy, particularly a recovery in the beleaguered housing market.

A report from the National Association of Realtors showed a significant increase in pending home sales, an indicator of future housing market activity. The increase came as many first-time buyers are taking advantage of historically good housing affordability conditions. The report showed that NAR's pending home sales index rose 3.2 percent in March following a revised 2.0 percent increase in February. Economists had expected the index to come in unchanged following the 2.1 percent increase originally reported for the previous month.

Separately, the Commerce Department released a report showing an unexpected increase in construction spending, which rose 0.3 percent in March following a 1.0 percent decrease in February. Economists had expected spending to fall by about 1.6 percent.

On the corporate front, shares of Sprint Nextel (S) turned in a strong performance after the telecom giant reported a wider first quarter loss compared to the year-ago period but reported an unexpected adjusted profit. Sprint Nextel reported a net loss for the quarter of $594 million or $0.21 per share compared to a loss of $505 million or $0.18 per share in the year-ago quarter. Excluding items, the company earned $0.03 per share compared to analyst estimates of a loss of $0.05 per share.

In other news, President Barack Obama discussed his administration's efforts to close tax loopholes in remarks Monday, pledging that his administration is working to reform the tax system and crack down on illegal overseas tax evasion. Obama said his administration's efforts to crack down on offshore tax evasion, which he called the largest tax scam in the world, would raised $210 billion over the next ten years.

The major averages saw some further upside going into the close, ending the session at or near their best levels of the day. The Dow closed up 214.33 points or 2.6 percent at 8,426.74, the NASDAQ closed up 44.36 points or 2.6 percent at 1,763.56 and the S&P 500 closed up 29.72 points or 3.4 percent at 907.24. With the gains, the NASDAQ ended the session at its best closing level in six-months, while the Dow and the S&P 500 set nearly four-month closing highs. The upward move also lifted the S&P 500 above the unchanged line for the year-to-date period.

In economic news, the CLSA Purchasing Managers Index rose in April for the first time in nine months, indicating an expansion in China's manufacturing sector. Monday, reports said citing CLSA Asia-Pacific Markets that the PMI rose to 50.1 in April from 44.8 in the prior month. A reading above 50 suggests expansion in the manufacturing activity. Among the sub-indicators, the export order index climbed to 48.8 in April from 41.4 in March and the output index rose to 51.3 from 44.3. The employment index was at 50.9, up from 47.1.

The increase was consistent with the official PMI, released by the China Federation of Logistics and Purchasing on behalf of the National Bureau of Statistics on May 1. It rose to 53.5 in April from 52.4 in March, above the 50-mark for the second straight month.

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