The China stock market has experienced a four-day losing streak, having dropped over 200 points or 6% during this period. Currently, the Shanghai Composite Index is positioned just above the 3,200 mark, with expectations of an upward opening on Tuesday.
The outlook for Asian markets is optimistic, primarily driven by an anticipated rise in technology stocks, following the largely positive performance of European and U.S. markets, which are likely to set a similar trend for Asian markets.
On Monday, the SCI witnessed a marginal decline due to setbacks in the property sector, despite advances in financial stocks and a mixed performance from resource-based companies.
Specifically, the index saw a modest decline of 4.51 points, or 0.14%, closing at 3,206.92, with a trading range between 3,185.46 and 3,219.49. Meanwhile, the Shenzhen Composite Index fell by 7.01 points, or 0.38%, finishing at 1,849.45.
Breaking down the activity of major stocks: Industrial and Commercial Bank of China rose by 0.60%, Bank of China increased by 0.75%, China Construction Bank edged up by 0.12%, and China Merchants Bank advanced by 1.01%. Similarly, Agricultural Bank of China recorded a 0.78% gain. In contrast, China Life Insurance fell by 0.36%, and Aluminum Corp of China (Chalco) dropped by 1.64%. However, Jiangxi Copper surged by 1.22%, and PetroChina added 0.68%, while Yankuang Energy slightly increased by 0.14%. China Petroleum and Chemical (Sinopec) saw a slight decrease of 0.15%. Additionally, Huaneng Power decreased by 0.30%, China Shenhua Energy lost 0.62%, Gemdale declined by 0.70%, China Vanke slipped by 0.29%, and Poly Developments remained unchanged.
The sentiment from Wall Street is largely positive with major indices opening stronger on Monday, although the Dow Jones Industrial Average concluded slightly negative.
The Dow dipped by 25.57 points, or 0.06%, to close at 42,706.56. In contrast, the NASDAQ jumped by 243.30 points, or 1.24%, finishing at 19,864.98, and the S&P 500 climbed 32.91 points, or 0.55%, to end at 5,975.38.
The initial surge on Wall Street was bolstered by robust performance in tech stocks, particularly following Foxconn's report of record fourth-quarter revenue, boosted by increased demand for AI servers.
Further interest in buying was spurred by reports suggesting President-elect Donald Trump might reconsider scaling back his tariff plans.
Meanwhile, crude oil prices were unable to maintain early gains on Monday, ending a five-day winning streak. However, the decline was cushioned after Saudi Arabia, the leading oil exporter, raised prices for Asian consumers for the first time in three months. Consequently, West Texas Intermediate Crude for February delivery diminished by $0.46, or 0.5%, to settle at $73.50 per barrel.
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