Before the extended Labor Day weekend, the China stock market broke its four-day winning streak that had accumulated nearly 100 points, or a 3% rise. Currently, the Shanghai Composite Index rests slightly above the 3,100-point level but is predicted to recover on Monday.
Global forecasts suggest a positive outlook for Asian markets, attributed to improved interest rate prospects. This follows solid gains in both European and US markets, setting an optimistic tone for Asian counterparts.
The Shanghai Composite Index (SCI) experienced a small drop on Tuesday, due to a balance of losses and gains across financial, property, and resource stocks. The index fell by 8.22 points or 0.26%, settling at 3,104.82. The Shenzhen Composite Index also declined, losing 12.36 points or 0.70% to close at 1,756.08.
In active trades, the Industrial and Commercial Bank of China increased 0.93%, the Bank of China rose 0.44%, and the China Construction Bank earned 0.71%. Conversely, China Merchants Bank lost 1.63%, while China Life Insurance shed 0.49%, and Aluminum Corp of China (Chalco) decreased by 0.27%. Other notable movements included a 6.70% surge by Gemdale, and a decline of 3.99% by Poly Developments.
US Wall Street had a strong performance, with consistent gains throughout Friday's session. The Dow rose by 449.98 points or 1.18%, the NASDAQ increased by 315.33 points or 1.99%, and the S&P 500 elevated 63.59 points or 1.26%.
This Wall Street rally was influenced by Labor Department figures indicating slower-than-expected US employment growth in April. The optimistic view of interest rates, following the Federal Reserve's recent policy meeting, further fueled the positive vibe.
However, a report by the Institute for Supply Management revealed that US service sector activities unexpectedly fell in April. Oil prices also experienced a decline with concerns over global oil demand.
In China-related economic data, the services Purchasing Managers' Index (PMI) for April will be released by Caixin. Previously in March, the index scored 52.7.
