(RTTNews) - The China stock market on Thursday extended its winning streak to five sessions, adding more than 190 points or 6.3 percent in the process. The Shanghai Composite Index finished just below the 3,150-point plateau, and now analysts are calling for the market to extend those gains at the opening of trade on Friday.

The global forecast for the Asian markets is broadly positive, sparked by better than expected economic data out of the United States. Steel and technology stocks are expected to provide support as a result, along with financials and property stocks. The European markets were modestly higher and the U.S. bourses were sharply higher - and the Asian markets are also tipped to move to the upside.

The SCI finished modestly higher on Thursday, thanks to gains among the pharmaceutical and tourism stocks.

For the day, the index climbed 26.51 points or 0.85 percent to finish at 3,155.05 after trading between 3,158.72 and 3,122.52. The Shenzhen Index lost 29.51 points or 0.23 percent to finish at 12,901.7 for a combined turnover of 253.96 billion yuan.

Among the gainers, Tianjin Good Hand Railway Holding, Shanghai Waigaoqiao Free Trade Zone and Shanghai Dragon all rose by the daily limit of 10 percent, while China International Travel Service jumped 6.34 percent, Beijing Capital Tourism surged 6.82 percent and China Railway Group added 1.31 percent.

Wall Street offers a sparkling lead as stocks saw a significant rally on Thursday, with trader sentiment picking up following some upbeat figures on the labor market and quarterly productivity. The major averages all posted standout gains after ending each of the two previous sessions mixed, with the Dow climbing back above the 10,000 level.

Before the start of trading, the Labor Department released its report on initial jobless claims for the week ended October 31, showing that first-time claims for unemployment benefits fell by more than economists had been anticipating. Jobless claims fell to 512,000 from the previous week’s revised figure of 532,000.

Economists had been expecting jobless claims to edge down to 522,000 from the 530,000 originally reported for the previous week. With the bigger than expected decrease, jobless claims fell to their lowest level since claims came in at 488,000 in early January, the last time claims were below 500,000.

A separate report from the Labor Department showed that labor productivity increased by much more than expected in the third quarter, with the report also showing a bigger than expected decrease in labor costs.

Retail sales data for the month of October was also on traders’ radar, including a widely mixed batch of results from Saks (SKS), JC Penney (JCP), Target (TGT), American Eagle Outfitters (AEO), Aeropostale (ARO) and Gap (GPS).

On the earnings front, Cisco Systems (CSCO) reported first quarter adjusted net income of $0.36 per share compared to $0.42 per share a year ago, while sales for the quarter fell 12.7 percent to $9.0 billion. Analysts expected the company to earn $0.31 per share on sales of $8.74 billion.

The major averages remained firmly positive going into the close, ending the session just off their best levels of the day. The Dow closed up by 203.82 points or 2.1 percent at 10,005.96, the NASDAQ gained 49.80 points or 2.4 percent to end at 2,105.32 and the S&P 500 advanced by 20.13 points or 1.9 percent to 1,066.63.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Eurozone, Releases, Stocks, USA.

Subscribe by RSS Subscribe by Email