The China stock market has experienced a downward trend over the past three sessions, with a cumulative decline exceeding 30 points or 0.9%. The Shanghai Composite Index is currently positioned just above the 3,350-point mark, though there is potential for stabilization on Tuesday.
Prospects for the Asian markets appear positive, buoyed by anticipated gains in technology stocks. While European markets remained steady, U.S. markets posted gains, setting a precedent that Asian markets are likely to follow.
On Monday, the SCI saw a moderate decline, as losses in the property sector were counterbalanced by gains in financial and resource stocks. The index dropped by 16.81 points or 0.50% to close at 3,351.26, navigating between 3,348.28 and 3,384.99. Meanwhile, the Shenzhen Composite Index fell 46.79 points or 2.29% to close at 1,995.10.
Noteworthy performances included Industrial and Commercial Bank of China rising by 2.60%, Bank of China increasing 1.90%, and China Construction Bank climbing 1.65%. Among other gainers, Agricultural Bank of China surged 2.98%, PetroChina advanced 2.88%, while China Petroleum and Chemical Corporation (Sinopec) improved by 2.51%. Conversely, Yankuang Energy fell by 0.43%, and China Vanke dropped 2.05%.
In the U.S., Wall Street provided a positive lead. Despite opening flat on Monday, major indices finished stronger. The Dow Jones Industrial Average gained 66.69 points or 0.16% to finish at 42,906.95. The NASDAQ experienced a significant rise of 192.29 points or 0.98%, closing at 19,764.88, while the S&P 600 saw a rise of 43.22 points or 0.73% to end at 5,974.07.
The NASDAQ's rise was driven by a rally in semiconductor stocks, with additional strength in computer hardware stocks. Trading volumes remained subdued, as traders exhibited caution with the approach of the Christmas holiday, which is expected to slow down market activity this week.
In other economic developments, the U.S. Commerce Department reported a larger-than-anticipated decline in new orders for manufactured durable goods in November. Additionally, consumer confidence took an unexpected hit in December, as indicated by the Conference Board.
Oil futures settled lower on Monday due to concerns over potential oversupply and a stronger U.S. dollar impacting prices. West Texas Intermediate Crude for February delivery decreased by $0.26 to settle at $69.20 per barrel.
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