(RTTNews) – Ahead of the weeklong break for the National Day holiday, the China stock market had alternated between positive and negative finishes through the last five trading days since the end of the three-day losing streak in which it had climbed more than 35 points or 1 percent. Off since September 30, the Shanghai Composite Index now rests just beneath the 3,570-point plateau and now it’s looking at a higher open on Friday.
The global forecast for the Asian markets is broadly positive on a U.S. debt limit agreement, upbeat economic news and a spike in crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.
The SCI finished modestly higher last week on gains from the energy producers, weakness from the financials and mixed performances from the resource and property stocks.
For the day, the index climbed 31.87 points or 0.90 percent to finish at 3,568.17 after trading between 3,541.93 and 3,572.43. The Shenzhen Composite Index surged 47.90 points or 2.04 percent to end at 2,395.05.
Among the actives, Industrial and Commercial Bank of China shed 0.43 percent, while Bank of China fell 0.33 percent, China Construction Bank lost 0.50 percent, China Merchants Bank and Aluminum Corp of China (Chalco) both tumbled 2.15 percent, Bank of Communications collected 0.22 percent, China Life Insurance tanked 2.17 percent, Jiangxi Copper soared 3.47 percent, Yanzhou Coal dipped 0.31 percent, PetroChina slid 0.50 percent, Huaneng Power surged 4.68 percent, China Shenhua Energy rallied 2.21 percent, Gemdale retreated 1.32 percent, Poly Developments jumped 1.59 percent, China Vanke added 0.66 percent and China Fortune Land Development and China Petroleum and Chemical (Sinopec) were unchanged.
The lead from Wall Street is solid as the major averages opened higher on Thursday and remained that way throughout the trading day.
The Dow surged 337.95 points or 0.98 percent to finish at 34,754.94, while the NASDAQ jumped 152.10 points or 1.05 percent to close at 14,654.02 and the S&P 500 gained 36.21 points or 0.83 percent to end at 4,399.76.
The rally on Wall Street came as lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default. The agreement would reportedly increase the debt limit by $480 billion, allowing the Treasury to continuing paying its bills through December 3.
Adding to the positive sentiment, a report from the Labor Department showed a bigger than expected pullback in first-time claims for U.S. unemployment benefits last week.
Crude oil prices advanced Thursday, rebounding from losses in the previous session, on reports the U.S. Energy Department is unlikely to tap the nation’s Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for November ended up $0.87 or 1.1 percent at $78.30 a barrel.
Closer to home, China will see September results for the services and composite indexes from Caixin later this morning; in August, their scores were 46.7 and 47.2, respectively.