The China stock market reversed a three-day downward trend on Tuesday, recovering nearly 120 points or 3.7 percent. The Shanghai Composite Index now rests slightly below the 3,350 threshold and is anticipated to continue its upward trajectory in Wednesday's opening.
The global outlook for Asian markets is mixed, with a bias towards gains driven by strength in the oil and technology sectors. While European markets experienced declines, U.S. markets closed largely higher, forecasted to influence Asian markets to follow suit.
On Tuesday, the Shanghai Composite saw moderate gains, buoyed by resource stocks, despite some weakness in financials and a mixed performance from the property sector. The index climbed by 22.16 points, or 0.67 percent, closing at 3,346.01, with a trading range of 3,284.13 to 3,346.76. The Shenzhen Composite Index surged 43.08 points, or 2.19 percent, to finish at 2,009.86.
In terms of individual performances, Industrial and Commercial Bank of China fell 0.65 percent, Bank of China declined 0.40 percent, China Construction Bank dropped 0.64 percent, China Merchants Bank dipped 0.47 percent, and Agricultural Bank of China slid 1.04 percent. China Life Insurance decreased by 0.92 percent. In contrast, Jiangxi Copper rose 1.15 percent, Aluminum Corp of China (Chalco) increased by 1.79 percent, and Yankuang Energy added 0.52 percent. PetroChina edged down 0.25 percent, China Petroleum and Chemical (Sinopec) fell 1.10 percent, Huaneng Power decreased by 1.52 percent, and China Shenhua Energy slipped 0.77 percent. Meanwhile, Gemdale gained 0.19 percent, China Vanke dropped 1.02 percent, and Poly Developments remained unchanged.
Wall Street presented a cautiously positive signal as major averages initially opened lower on Tuesday. However, both the NASDAQ and S&P 500 managed to close in positive territory. The Dow Jones Industrial Average fell by 120.66 points, or 0.28 percent, to 43,268.94. The NASDAQ gained 195.66 points, or 1.04 percent, reaching 18,987.47, and the S&P 500 increased by 23.36 points, or 0.40 percent, ending at 5,916.98.
The early losses on Wall Street were attributed to rising concerns over escalating tensions between the U.S. and Russia regarding the conflict in Ukraine. This came after President Joe Biden authorized Ukraine to use U.S.-supplied long-range missiles to target Russian territory, prompting Russian President Vladimir Putin to amend the country's nuclear doctrine.
However, selling pressure diminished soon after trading began, as shares of Nvidia (NVDA) surged, leading to a recovery in the NASDAQ. Nvidia is set to release its Q3 earnings later today.
In commodities, oil futures saw an increase on Tuesday amid the heightened risk of supply disruptions following Ukraine's launch of long-range U.S.-made missiles targeting a facility in Russia's Bryansk region. West Texas Intermediate Crude oil futures for December delivery rose by $0.23, approximately 0.3 percent, closing at $69.39 per barrel.
