Since emerging from a three-day losing streak that saw a dip of nearly 70 points or 2.3 percent, the Chinese stock market has experienced gains in two out of three trading sessions. The Shanghai Composite Index currently rests slightly above the 3,235-point mark, though a downturn is anticipated on Friday.
The outlook for Asian markets appears fragile, driven by expectations of declines in oil and technology shares. While European markets posted gains, U.S. markets experienced a decline, setting a likely trend for Asian markets.
On Thursday, the Shanghai Composite Index recorded a modest rise, buoyed by increases in the financial and resource sectors. The index climbed 8.92 points, or 0.28 percent, reaching 3,236.03, with trading ranging between 3,217.10 and 3,265.28. Meanwhile, the Shenzhen Composite Index rose by 8.31 points, or 0.44 percent, to settle at 1,909.45.
Notable performers included Industrial and Commercial Bank of China, up 0.75 percent, and China Construction Bank, which climbed 1.68 percent. China Merchants Bank advanced 0.86 percent, while Agricultural Bank of China saw a 0.59 percent increase. Gains were also reported from China Life Insurance (0.73 percent), Jiangxi Copper (2.93 percent), and Aluminum Corp of China (Chalco) (5.00 percent). Yankuang Energy improved by 0.75 percent, PetroChina rose 1.58 percent, and China Petroleum and Chemical (Sinopec) edged up 0.32 percent. However, Huaneng Power dipped 0.47 percent, Gemdale decreased 0.44 percent, Poly Developments dropped 0.80 percent, and China Vanke inched up 0.29 percent.
The lead from Wall Street is unfavorable, as the indices started slightly positive on Thursday but quickly shifted downward, maintaining losses through most of the day. The Dow Jones Industrial Average fell 68.42 points or 0.16 percent to conclude at 43,153.13. The NASDAQ plunged 172.95 points or 0.89 percent to finish at 19,338.29, while the S&P 500 declined 12.57 points or 0.21 percent to end at 5,937.34.
Volatile trading on Wall Street signaled investors taking a break to evaluate the near-term market prospects following a robust rally on Wednesday, when the major indices recorded their highest daily percentage gains in over two months. Market participants were also considering a range of U.S. economic data, including reports on weekly jobless claims, retail sales, and import prices, which largely met expectations and supported optimism regarding a potential interest rate cut by the Federal Reserve in the early half of the year.
Oil prices saw a significant drop on Thursday after an agreement between Israel and Hamas to implement a ceasefire, as endorsed by the UN Security Council. February's futures for West Texas Intermediate Crude closed down $1.36 or 1.7 percent, settling at $78.68 a barrel.
In domestic news, China is slated to release key economic data later today, including Q4 GDP figures and December statistics for industrial production, retail sales, fixed asset investment, and unemployment rates. GDP is forecast to rise 1.7 percent quarterly and 5.0 percent annually, following a 0.9 percent quarterly increase and a 4.6 percent annual rise in the third quarter. Industrial production is anticipated to hold steady at 5.4 percent year-over-year, with retail sales expected to increase by 3.5 percent annually, up from November's 3.0 percent. Fixed asset investment (3.3 percent) and the unemployment rate (5.0 percent) are both expected to remain unchanged from the previous month.
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