The China stock market has experienced a six-day consecutive rally, gaining over 180 points or 7 percent in total. The Shanghai Composite Index now sits just under the 2,900-point mark, though a correction through profit-taking is anticipated on Thursday.
The outlook for Asian markets appears bleak, as overbought regional indices are expected to undergo profit-taking. European and U.S. markets largely closed lower, and it is likely that Asian markets will follow this trend.
On Wednesday, the Shanghai Composite Index (SCI) rose significantly, buoyed by financial shares, property stocks, and resource companies. The index advanced 33.18 points or 1.16 percent to close at 2,896.31, fluctuating between 2,889.05 and 2,952.45. The Shenzhen Composite Index also gained 19.30 points or 1.24 percent, ending at 1,575.28.
Notable performance among active stocks included Industrial and Commercial Bank of China, increasing by 0.67 percent, China Construction Bank by 0.78 percent, and China Merchants Bank soaring by 3.08 percent. Bank of Communications climbed 1.12 percent, China Life Insurance surged 3.53 percent, and Jiangxi Copper saw a rally of 1.35 percent. Aluminum Corp of China (Chalco) jumped 1.93 percent, Yankuang Energy gained 0.55 percent, and PetroChina rose by 0.48 percent. Conversely, China Petroleum and Chemical (Sinopec) fell by 0.59 percent. Other movers included Huaneng Power, inching up by 0.15 percent, China Shenhua Energy rising by 1.46 percent, Gemdale improving by 1.23 percent, Poly Developments advancing by 1.47 percent, China Vanke accelerating by 2.67 percent, and Bank of China remaining unchanged.
Wall Street offered a subdued lead as major averages began Wednesday on a mixed note but trended downward to close mostly in the red. The Dow Jones Industrial Average dropped 293.47 points or 0.70 percent to close at 41,914.75. The NASDAQ, however, saw a slight increase of 7.68 points or 0.04 percent to finish at 18,082.21, while the S&P 500 dipped 10.67 points or 0.19 percent to end at 5,722.26.
Wall Street's mixed performance reflects trader uncertainty regarding the near-term market outlook, despite recent gains that have propelled the Dow and the S&P 500 to record highs.
In economic news, the Commerce Department reported a sharp decline in new home sales for August. Upcoming data releases include weekly jobless claims, durable goods orders, and personal income and spending. Additionally, Federal Reserve Chair Jerome Powell's speech later today is highly anticipated.
Oil prices experienced a sharp decline on Wednesday due to uncertainties surrounding demand forecasts and diminishing concerns about supply disruptions in Libya. West Texas Intermediate Crude oil futures for November fell by $1.87 or 2.6 percent, closing at $69.69 a barrel.
