The China stock market has moved lower in back-to-back sessions, stumbling more than 50 points or 1.9 percent along the way. The Shanghai Composite Index now sits just above the 2,735-point plateau although its expected to open to the upside on Tuesday.
The global forecast for the Asian markets is positive on anticipated bargain hunting and on the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are tipped to open in similar fashion.
The SCI finished sharply lower on Monday following losses from the financial shares, property stocks and resource companies.
For the day, the index dropped 29.32 points or 1.06 percent to finish at 2,736.49 after trading between 2,726.97 and 2,756.56. The Shenzhen Composite Index lost 8.95 points or 0.59 percent to end at 1,496.23.
Among the actives, Industrial and Commercial Bank of China shed 0.53 percent, while Bank of China dropped 0.85 percent, China Construction Bank sank 0.84 percent, China Merchants Bank surrendered 3.23 percent, Agricultural Bank of China collected 0.22 percent, China Life Insurance shed 0.74 percent, Jiangxi Copper retreated 1.21 percent, Aluminum Corp of China (Chalco) tumbled 1.86 percent, Yankuang Energy plummeted 5.62 percent, PetroChina stumbled 2.74 percent, China Petroleum and Chemical (Sinopec) tanked 3.33 percent, Huaneng Power skidded 1.05 percent, China Shenhua Energy slumped 2.16 percent, Gemdale improved 0.83 percent, Poly Developments declined 1.95 percent and China Vanke weakened 1.55 percent.
The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained well in the green throughout the trading day.
The Dow surged 484.18 points or 1.20 percent to finish at 40,829.59, while the NASDAQ rallied 193.77 points or 1.16 percent to close at 16,884.60 and the S&P 500 climbed 62.63 points or 1.16 percent to end at 5,471.05.
The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop seen last week, which dragged the NASDAQ down to its lowest levels in nearly a month.
Optimism the Federal Reserve will lower interest rates later this month has also contributed to the strength on Wall Street, despite lingering concerns about the outlook for the U.S. economy.
CME Groups FedWatch Tool is currently indicating a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50 basis point rate cut.
Oil prices climbed higher Monday on the possibility of weather-related production issues in the the Gulf of Mexico, and on OPECs decision to delay a production boost originally scheduled to begin in October. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.54 percent at $68.71 a barrel.