(RTTNews) – The China stock market on Friday wrote a finish to the four-day losing streak in which it had advanced almost 125 points or 3.7 percent. The Shanghai Composite Index now rests just above the 3,600-point plateau although it’s predicted to move back to the upside on Monday.
The global forecast for the Asian markets is positive on easing inflation concerns. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.
The SCI finished slightly lower on Friday following losses from the property stocks, support from the financials and a mixed performance from the resource companies.
For the day, the index fell 8.07 points or 0.22 percent to finish at 3,600.78 after trading between 3,582.36 and 3,622.18. The Shenzhen Composite Index slid 5.79 points or 0.24 percent to end at 2,393.49.
Among the actives, Industrial and Commercial Bank of China rose 0.19 percent, while Bank of China advanced 0.91 percent, China Construction Bank collected 0.72 percent, China Merchants Bank gained 0.95 percent, Bank of Communications added 0.41 percent, China Life Insurance improved 0.69 percent, Jiangxi Copper climbed 1.25 percent, Aluminum Corp of China (Chalco) jumped 1.52 percent, Yanzhou Coal dropped 0.89 percent, PetroChina perked 0.65 percent, China Shenhua Energy dipped 0.25 percent, Gemdale tanked 2.77 percent, Poly Developments skidded 1.31 percent, China Vanke sank 0.77 percent, China Fortune Land plunged 3.53 percent and China Petroleum and Chemical (Sinopec) and Huaneng Power were unchanged.
The lead from Wall Street is cautiously optimistic as the major averages opened higher on Friday, faded as the day progressed but still finished slightly in the green.
The Dow added 64.81 points or 0.19 percent to finish at 34,529.45, while the NASDAQ gained 12.46 points or 0.09 percent to end at 13,748.74 and the S&P 500 rose 3.23 points or 0.08 percent to close at 4,204.11.
The strength on Wall Street came as the inflation reading preferred by the Federal Reserve showed an acceleration in the pace of price growth but not as much as traders had feared.
While the increase in prices exceeded estimates, the jump was not so severe as to raised concerns about the Federal Reserve tightening monetary policy.
Crude oil futures settled lower Friday, snapping a five-day winning streak as traders took profits ahead to the upcoming OPEC meeting. West Texas Intermediate Crude oil futures for July fell $0.53 or 0.8 percent at $66.32 a barrel.
Closer to home, China will see May results for its manufacturing and non-manufacturing PMIs later this morning; in Aril, their scores were 51.1 and 54.9, respectively.