(RTTNews) - The China stock market bounced higher again on Friday, one session after ending the four-day winning streak in which it had gathered more than 80 points or 2.6 percent. The Shanghai Composite Index now sits just beneath the 3,285-point although it figures to head south again on Monday.
The global forecast for the Asian markets is sharply negative on growing interest rate and inflation concerns. The European and U.S. markets took heavy damage and the Asian bourses are tipped to open in similar fashion.
The SCI finished sharply higher on Friday following gains from the financial shares and energy producers.
For the day, the index jumped 45.88 points or 1.42 percent to finish at 3,284.83 after trading between 3,210.81 and 3,286.62. The Shenzhen Composite Index spiked 39.61 points or 1.94 percent to end at 2,085.31.
Among the actives, Industrial and Commercial Bank of China collected 0.64 percent, while Bank of China added 0.62 percent, China Construction Bank rose 0.50 percent, China Merchants Bank fell 0.42 percent, Bank of Communications strengthened 1.42 percent, China Life Insurance advanced 0.90 percent, Jiangxi Copper climbed 1.02 percent, Aluminum Corp of China (Chalco) jumped 1.58 percent, Yankuang Energy perked 0.28 percent, PetroChina improved 1.55 percent, China Petroleum and Chemical (Sinopec) gained 0.48 percent, Huaneng Power lost 0.61 percent, China Shenhua Energy eased 0.06 percent, Gemdale dropped 0.93 percent, Poly Developments dipped 0.32 percent, China Vanke was up 0.17 percent, China Fortune Land retreated 0.63 percent and Beijing Capital Development was unchanged.
The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained that way throughout the session, ending with heavy losses.
The Dow plummeted 880.00 points or 2.73 percent to finish at 31,392.79, while the NASDAQ plunged 414.20 points or 3.52 percent to close at 11,340.02 and the S&P 500 tumbled 116.96 points or 2.91 percent to end at 3,900.86.
For the week, the Dow plunged 4.6 percent, the NASDAQ tanked 5.6 percent and the S&P 500 sank 5.1 percent.
The sell-off on Wall Street came after the Labor Department released a report showing consumer prices in the U.S. shot up by more than expected in the month of May, raising concerns about the outlook for interest rates.
The inflation spike is likely to convince the Federal Reserve to follow through on its plans to aggressively raise interest rates in an effort to combat inflation. The Fed will announce its latest monetary policy decision on Wednesday, with the central bank widely expected to raise interest rates by another 50 basis points.
Crude oil prices fell on Friday as the dollar surged higher after data showing a steep acceleration in U.S. inflation raised fears of more aggressive rate hikes by the Federal Reserve. West Texas Intermediate Crude oil futures for July ended lower by $0.84 or 0.7 percent at $120.67 a barrel.
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