The Chinese stock market has seen an upward trend over the past two sessions, accumulating nearly 40 points, or a 1.2% increase. Currently, the Shanghai Composite Index is positioned just above the 3,400-point mark, with prospects of continued support on Monday.
Globally, the forecast for Asian markets ranges from stable to slightly positive, buoyed by optimism regarding interest rate prospects. European and U.S. markets showed mixed, largely flat performances on Friday, setting a similar precedent for the Asian markets.
On Friday, the Shanghai Composite Index (SCI) closed the session significantly higher, driven by gains in financials, property, and resource sectors. The index climbed 35.22 points, or 1.05%, to close at 3,404.08, with trading fluctuating between 3,364.21 and 3,418.26. Meanwhile, the Shenzhen Composite Index added 25.34 points, or 1.24%, finishing at 2,064.65.
Among the notable performers, Industrial and Commercial Bank of China rose by 0.96%, Bank of China increased by 0.39%, China Construction Bank ascended by 0.49%, and China Merchants Bank surged by 2.14%. Agricultural Bank of China and Yankuang Energy both advanced by 0.61%. China Life Insurance saw a significant gain of 3.84%, Jiangxi Copper appreciated by 1.28%, and Aluminum Corp of China (Chalco) gained 1.33%. PetroChina edged up by 0.36%, while China Petroleum and Chemical (Sinopec) rallied 2.93%. Huaneng Power climbed by 0.99%, and China Shenhua Energy and Poly Developments both rose by 1.00%. Gemdale added 0.18% and China Vanke leaped by 1.88%.
In contrast, Wall Street provided a mixed signal. Although major averages started strong on Friday, the Dow slipped, erasing earlier gains, resulting in a mixed market close.
The Dow dropped 123.18 points, or 0.28%, to close at 44,642.52. Conversely, the NASDAQ climbed 159.07 points, or 0.81%, finishing at 19,859.77, while the S&P 500 fell slightly by 15.16 points, or 0.25%, to end at 6,090.27.
The Dow's decline was compounded by a further drop in UnitedHealth’s stock following the tragic death of CEO Brian Thompson. However, the NASDAQ and S&P benefited from a favorable response to the Labor Department's employment report, which showed stronger-than-expected job growth in November. Nonetheless, the report indicated a slight rise in the unemployment rate to 4.2% in November from 4.1% in October, boosting expectations that the Federal Reserve might cut interest rates by 25 basis points later this month.
Oil prices experienced a decline on Friday due to potential oversupply concerns. West Texas Intermediate (WTI) crude oil futures for January fell by $1.10, or 1.61%, to settle at $67.20 per barrel, marking a nearly 1% drop for the week.
In China, new data on consumer and producer prices for November is expected later today. In October, consumer prices decreased by 0.3% monthly and increased by 0.3% annually, while producer prices declined by 2.9% annually.
