The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.
The SCI finished slightly lower on Wednesday as support from the energy, finance and property sectors held at bay losses from the broader market.
For the day, the index slipped 7.67 points or 0.24 percent to finish at 3,161.84 after trading between 3,160.89 and 3,184.76.
Among the actives, Industrial and Commercial Bank of China rose 0.23 percent, while Bank of China collected 0.31 percent, China Construction Bank improved 0.71 percent, China Merchants Bank jumped 1.75 percent, Bank of Communications advanced 0.84 percent, China Life Insurance strengthened 1.62 percent, Jiangxi Copper climbed 1.14 percent, Aluminum Corp of China (Chalco) added 0.42 percent, Yankuang Energy skyrocketed 7.75 percent, PetroChina perked 0.20 percent, China Petroleum and Chemical (Sinopec) gained 0.92 percent, Huaneng Power dropped 0.95 percent, China Shenhua Energy surged 5.03 percent, Gemdale gathered 0.89 percent, Poly Developments rallied 2.45 percent, China Vanke was up 1.01 percent and China Fortune Land was unchanged.
The lead from Wall Street is broadly positive as the major averages opened higher on Wednesday and mostly improved as the session progressed.
The strength on Wall Street reflected optimism about the highly anticipated consumer price inflation report due later today.The Dow jumped 268.91 points or 0.80 percent to finish at 33,973.01, while the NASDAQ spiked 189.04 points or 1.76 percent to close at 10,931.67 and the S&P 500 advanced 50.36 points or 1.28 percent to end at 3,969.61.
The report is expected to show a slowdown in the annual rate of consumer price growth and could have a significant impact on the outlook for interest rates.
Crude oil prices rose sharply Wednesday on hopes for a global economic recovery and the possible impact of sanctions on Russian crude output. West Texas Intermediate crude oil futures for February jumped by $2.29 or 3.1 percent at $77.41 a barrel, rising for a fifth straight session.
Closer to home, China will release December data for consumer and producer prices. Overall consumer prices are expected to slip 0.1 percent on month and rise 1.8 percent on year after falling 0.2 percent on month and climbing 1.6 percent on year in November. Producer prices are tipped to ease an annual 0.1 percent after sinking 1.3 percent in the previous month.