China Stock Market Due For Support On Wednesday

(RTTNews) - The China stock market has closed lower in four straight sessions, falling more than 100 points or 3.4 percent along the way. The Shanghai Composite Index now rests just above the 3,070-point plateau although it may get a lift from bargain hunters on Wednesday.

The global forecast for the Asian markets is cautiously optimistic, with bargain hunting expected after days of heavy selling on recession fears. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The SCI finished sharply lower on Tuesday following losses from the financial shares, property stocks and resource companies.

For the day, the index slumped 33.35 points or 1.07 percent to finish at 3,073.77 after trading between 3,061.51 and 3,100.75.

Among the actives, Industrial and Commercial Bank of China shed 0.70 percent, while Bank of China lost 0.63 percent, China Construction Bank tumbled 1.79 percent, China Merchants Bank tanked 2.14 percent, Bank of Communications skidded 0.85 percent, China Life Insurance lost 0.66 percent, Jiangxi Copper fell 0.41 percent, Aluminum Corp of China (Chalco) slid 0.43 percent, Yankuang Energy dropped 0.76 percent, PetroChina dipped 0.40 percent, China Petroleum and Chemical (Sinopec) eased 0.23 percent, Huaneng Power declined 1.72 percent, China Shenhua Energy declined 0.82 percent, Gemdale plunged 3.24 percent, Poly Developments surrendered 2.41 percent, China Vanke plummeted 3.31 percent and China Fortune Land retreated 2.27 percent.

The lead from Wall Street suggests mild upside as the major averages opened lower, bounced back and forth across the unchanged line and finally moved into positive territory for good in the afternoon.

The Dow advanced 92.20 points or 0.28 percent to finish at 32,848,74, while the NASDAQ perked 1.08 points or 0.01 percent to close at 10,547.11 and the S&P 500 rose 3.96 points or 0.10 percent to end at 3,821.62.

The modest strength on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness. The major averages had closed lower for four consecutive session, ending Monday's trading at their lowest closing levels in over a month.

Buying interest remained somewhat subdued, however, with some traders reluctant to get back into the markets amid lingering concerns the Federal Reserve's aggressive interest rate hikes will tip the economy into a recession.

In economic news, the Commerce Department reported a decrease in new residential construction and building permits in the U.S. in November.

Crude oil bounced higher on Tuesday thanks to an improving demand outlook and a slightly weaker dollar. West Texas Intermediate rose $0.83 or 1.10 percent to $76.02 per barrel.