The China stock market has managed to close higher in two of the last three trading sessions, recovering from a two-day losing streak that saw a nearly 70-point or 2.2% drop. Currently, the Shanghai Composite Index stands slightly above the 3,110 mark, but indications suggest it might decline again on Thursday.
The forecast for Asian markets remains pessimistic due to concerns about rising treasury yields and potential interest rate hikes. Both European and U.S. markets experienced losses, which is expected to have a knock-on effect on Asian markets.
On Wednesday, the TSE ended marginally higher, with strengths in energy and resource stocks balanced out by weaknesses in the financial sector.
For the day, the index edged up by 1.45 points or 0.05% to close at 3,111.02, after fluctuating between 3,100.98 and 3,128.14. Similarly, the Shenzhen Composite Index increased by 5.22 points or 0.30% to close at 1,734.14.
In notable stock movements, Industrial and Commercial Bank of China declined by 0.36%, Bank of China decreased by 0.67%, China Construction Bank fell by 0.56%, China Merchants Bank dropped by 0.75%, Bank of Communications slipped by 0.14%, and China Life Insurance dipped by 1.50%. Conversely, Jiangxi Copper rose by 2.03%, Aluminum Corp of China (Chalco) surged by 3.69%, Yankuang Energy and Huaneng Power both increased by 0.66%, PetroChina advanced by 0.96%, China Petroleum and Chemical (Sinopec) climbed by 0.46%, China Shenhua Energy went up by 1.28%, Gemdale fell by 0.44%, Poly Developments rose by 0.68%, and China Vanke improved by 0.70%.
Wall Street's influence was negative, as the major indices opened lower on Wednesday and remained in decline by the close.
The Dow Jones Industrial Average plunged by 411.32 points or 1.06% to end at 38,441.54, the NASDAQ dropped 99.30 points or 0.58% to close at 16,920.58, and the S&P 500 decreased by 39.09 points or 0.74% to finish at 5,266.95.
The downturn on Wall Street can be attributed to rising treasury yields, with the yield on the benchmark ten-year note reaching its highest level in almost a month. This increase has intensified worries about interest rate hikes as key inflation data approaches.
Crude oil prices also declined on Wednesday due to concerns about rising interest rates and the potential negative impact of high borrowing costs on energy demand. West Texas Intermediate Crude oil futures for July dropped by $0.60, settling at $79.23 per barrel.
