China Market Overdue For Consolidation On Monday

(RTTNews) - The win streak has stretched to four sessions now for the China stock market, which has surged more than 375 points or 4.1 percent on its way to a fresh seven-year closing high. The Shanghai Composite Index now rests just below the 4,660-point plateau, although investors figure to lock in gains on Monday.

The global forecast for the Asian markets suggests consolidation, thanks to hawkish remarks from Federal Reserve Chair Janet Yellen. The European and U.S. markets ended slightly lower, and the Asian bourses figure to follow that lead.

The SCI finished sharply higher again on Friday with broadly based support - particularly among the finance, technology and resource sectors.

For the day, the index soared 128.17 points or 2.83 percent to finish at 4,657.60 after trading between 4,562.99 and 4,658.27. The Shenzhen Component Index jumped 173.27 points or 1.09 percent to end at 16,045.80 for a combined turnover of 1.99 trillion yuan.

Among the actives, Sealand Securities and Dongxing Securities both climbed by the 10 percent daily limit, while Industrial Bank jumped 4.83 percent and Huaxia Bank collected 4.72 percent.

The lead from Wall Street is slightly negative as stocks moved lower on Friday, handing back some of the gains from earlier in the week.

Speaking to the Chamber of Commerce in Providence, R.I., Yellen said the central bank will likely raise interest rates this year, as long as economic activity picks up. She added that transitory factors were mostly to blame for first quarter weakness.

The S&P 500 was down 4.76 points or 0.2 percent to 2,126.06 but gained 0.2 percent for the week. The Dow dipped 0.3 percent or 53.72 points to 18,232.02 for a 0.2 percent weekly loss. The NASDAQ eased 1.43 points to 5,089.36, but added 0.8 percent for the week.

The choppy trading also followed the Labor Department's report on consumer price inflation, which rose in line with estimates, although core prices rose by more than expected.

The U.S. markets are closed on Monday for the Memorial Day holiday, and will re-open on Tuesday.