The China stock market has finished lower in three straight sessions, slipping almost 30 points or 0.8 percent along the way. The Shanghai Composite Index now rests just above the 3,535-point plateau although it may find traction on Wednesday.
The global forecast for the Asian is broadly positive, with bargain hunting expected for the oversold bourses. A spike in crude oil prices is also expected to provide support. The European and U.S. markets were up and the Asian markets are tipped to follow suit.
The SCI finished barely lower on Tuesday following losses from the financial shares, resource stocks and properties.
For the day, the index eased 2.33 points or 0.07 percent to finish at 3,536.79 after trading between 3,509.19 and 3,538.64.
Among the actives, Industrial and Commercial Bank of China shed 0.42 percent, while China Construction Bank lost 0.66 percent, China Merchants Bank tumbled 1.81 percent, Bank of Communications dropped 0.90 percent, China Life Insurance fell 0.67 percent, Jiangxi Copper plunged 3.33 percent, Aluminum Corp of China (Chalco) surrendered 2.58 percent, Yanzhou Coal tanked 2.78 percent, PetroChina sank 0.84 percent, China Petroleum and Chemical (Sinopec) rose 0.25 percent, Baoshan Iron plummeted 3.05 percent, Gemdale slid 0.31 percent, Poly Developments dipped 0.26 percent, China Vanke declined 1.66 percent, China Fortune Land retreated 1.93 percent and Bank of China was unchanged.
The lead from Wall Street is firm as the major averages opened in the green on Tuesday and continued to pick up steam as the session progressed, ending firmly higher.
The Dow jumped 549.95 points or 1.62 percent to finish at 34,511.99, while the NASDAQ spiked 223.89 points or 1.57 percent to end at 14,498.88 and the S&P 500 gained 64.57 points or 1.52 percent to close at 4,323.06.
The rebound on Wall Street came as traders picked up stocks at reduced levels after the steep drop on Monday dragged the major averages down to their lowest levels in almost a month.
A positive reaction to the latest earnings news also contributed to the rally, fueled by IBM Corp. (IBM), HCA Healthcare (HCA), Halliburton (HAL) and J.B. Hunt Transport Services (JBHT), among others.
In economic news, the Commerce Department reported a substantial increase in new residential construction in June, although building permits were down.
Crude oil futures rebounded on bargain hunting on Tuesday, even amid concerns about the outlook for energy demand and possible oversupply in the market. West Texas Intermediate Crude oil futures for September, the new front month contract, ended up $0.85 or 1.3 percent at $67.20 a barrel.
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