The China stock market has tracked higher in five straight sessions, advancing more than 150 points or 5.8 percent along the way. The Shanghai Composite now sits just above the 2,860-point plateau although its due for profit taking on Wednesday.
The global forecast for the Asian markets is positive on continued optimism over the outlook for interest rates. The European and U.S. markets saw mild upside and the Asian bourses figure to open in similar fashion, although some of the more oversold markets may correct to the downside.
The SCI finished with huge gains on Tuesday with support in all sectors following the introduction of further stimulus measures by the Chinese government.
For the day, the index surged 114.21 points or 4.15 percent to finish at 2,863.13 after trading between 2,761.37 and 2,863.15. The Shenzhen Composite Index rallied 59.15 points or 3.95 percent to end at 1,555.98.
Among the actives, Industrial and Commercial Bank of China collected 4.90 percent, while Bank of China added 4.48 percent, China Construction Bank gained 4.63 percent, China Merchants Bank advanced 5.54 percent, Agricultural Bank of China surged 6.74 percent, China Life Insurance and Aluminum Corp of China (Chalco) both rose 3.57 percent, Jiangxi Copper accelerated 4.02 percent, Yankuang Energy strengthened 4.29 percent, PetroChina jumped 4.37 percent, China Petroleum and Chemical (Sinopec) rallied 4.32 percent, Huaneng Power picked up 3.31 percent, China Shenhua Energy soared 5,32 percent, Gemdale gathered 1.25 percent, Poly Developments perked 1.11 percent and China Vanke increased 2.74 percent.
The lead from Wall Street is cautiously optimistic as the major averages opened slightly higher on Tuesday, bounced back and forth across the line and finally ended mixed and little changed.
The Dow added 83.57 points or 0.20 percent to finish at 42,208.22, while the NASDAQ gained 100.25 points or 0.56 percent to end at 18,074.52 and the S&P 500 rose 14.36 points or 0.25 percent to close at 5,732.93.
The strength that emerged on Wall Street came on continued optimism for more rate cuts from the Federal Reserve in the coming months.
The upside was limited by concerns for the economy after the Conference Board reported a notable deterioration in U.S. consumer confidence in September.
Oil prices rallied on Tuesday as concerns about the outlook for demand eased after the Chinese central bank announced a slew of stimulus measures to boost the nations economy. An escalation in tensions in the Middle East, and reports of a new storm in Gulf of Mexico also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures ended up by $1.19 or about 1.7 percent at $71.56 a barrel.