On Tuesday, the China stock market has finished higher in six consecutive sessions, rising more than 140 points or 6 % in that span. The Shanghai Composite Index finished just below the 2,430-point plateau, although the analysts are estimating a lower open.
The global forecast for the Asian markets is flat. Profit taking may play a role as several of the regional bourses are overbought. Spanish Prime Minister Mariano Rajoy is resigning over a corruption scandal, while, Silvio Berlusconi is rising support in Italy, ahead of an upcoming Italian elections. The investors jitter that if Berlusconi regains control of the country, he can undo recent reforms in Italy. The European and the U.S. markets were decline and the Asian bourses are expected to follow them. Meanwhile, the SCI closed modestly higher following gains from financial shares and coal miners.
The index gained 9.13 points or 0.38 % to close at 2,428.15 after trading between 2,417.58 and 2,440.38. The Shenzhen Composite Index declined 0.9 % to finish at 935.80.
Among the actives, Bank of China jumped 1.6 %, while China Construction Bank gained 0.6 %, Industrial and Commercial Bank of China rose 0.5%, Ping An added 1.4 %, Yanzhou Coal Mining soared 6.7 % and Henan Shenhuo Coal increased 4.8%.
On the U.S. economic, the Commerce Department posted that factory orders collected 1.8 % in December following 0.3 percent decline in November. Economists expected that the orders to rise by 2.4 % compared with the marginal increase originally posted for the previous month.
The major U.S. averages were decline as the Dow shed 129.71 points or 0.9 % to end at 13,880.08, while the NASDAQ plummeted 47.93 points or 1.5 % to finish at 3,131.17, and the S&P 500 eased 17.46 points or 1.2 % to close at 1,495.71.