RTTNews - The China stock market has extended its winning streak to four sessions, collecting more than 165 points or 5.5 percent on its way to a fresh 13-month closing high. The Shanghai Composite Index broke through resistance at 3,100 points, although investors say the market could hand those gains right back at the opening of trade on Tuesday.

The global forecast for the Asian markets is effectively flat with a touch of downside, ahead of the start of earnings season later this week. Technology shares and commodities are expected to see selling pressure, offsetting projected strength among the properties and chemical stocks. The European markets ended sharply lower, while the U.S. bourses finished in mixed fashion but near the unchanged line - and the Asian markets are predicted to follow the latter lead.

The SCI finished sharply higher on Monday, fueled by gains among the brokerages and the steel producers. For the day, the index jumped 36.30 or 1.2 percent to close at 3,124.67 after trading between 3,090.10 and 3,128.31. The Shenzhen Composite Index rose 1.0 percent to 1,010.59.

Among the gainers, Baoshan Iron & Steel surged 8.4 percent, while Wuhan Iron & Steel jumped 8.1 percent, Jiangxi Ganyue Expressway rose 3.0 percent, Xiandai Investment was 4.5 percent higher, Citic Securities gained 6.8 percent and Haitong Securities rose 4.6 percent.

Wall Street offers a mixed lead as stocks were able to shed most of their losses in late trading on Monday after a sharp move to the downside in early going. While the Dow and S&P 500 finished modestly higher, the tech-heavy NASDAQ closed on the downside.

On the economic front, traders largely shrugged off a report from the Institute for Supply Management showing that activity in the service sector contracted for the ninth consecutive month in June, although at a slower pace than economists had been expecting. The ISM said its index of activity in the service sector rose to 47.0 in June from 44.0 in May, but a reading below 50 indicates a contraction. Economists had been expecting the index to come in at 46.0.

On the corporate front, food and beverage giant PepsiCo Inc. (PEP), together with its bottling partner Pepsi Bottling Group Inc. (PBG), announced plans to invest $1 billion in Russia over three years. Meanwhile, EMC (EMC) raised its all-cash offer to acquire Data Domain (DDUP) to $33.50 per share for a total enterprise value of about $2.1 billion. EMC is competing with NetApp (NTAP) to acquire Data Domain.

Despite the major indices all moving higher going into the close, the NASDAQ was unable to break into positive territory. Subsequently, the NASDAQ finished down by 9.12 points or 0.5 percent at 1,787.40, while the Dow closed up by 44.13 points or 0.5 percent at 8,324.87 and the S&P 500 rose by 2.30 or 0.3 percent to 898.72.

In economic news, China on Monday has commenced a pilot scheme for companies to settle cross-border trade transactions in the yuan or the renminbi, reports said. Currently, some Shanghai companies have already agreed to settle deals with their Hong Kong and Indonesian trading partners. The move is widely seen as China's attempt to globalize the use of the yuan in trade transactions, thereby lessening the use of the U. S. dollar.

On June 29, the Chinese central bank and the Hong Kong Monetary Authority had signed a supplementary Memorandum of Co-operation to prepare for the implementation of the pilot scheme for the use of renminbi in settling cross-border trade transactions between the Mainland and Hong Kong. Once the administrative rules are promulgated, banks in Hong Kong would be able to offer related services to firms using renminbi to settle trade transactions with their counterparts on the Mainland.

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