China Shares Edge Higher Ahead of Key Economic Data Release

China’s stock market gained in two of the past three sessions after ending a three-day decline that erased nearly 70 points, or 2.3 percent. The Shanghai Composite Index is now trading just above the 3,235-point level, although a pullback on Friday remains possible.

The outlook for Asian markets is weak, with oil and technology shares expected to weigh on performance. European equities were higher while U.S. bourses declined, suggesting Asian traders may follow the lead of American markets.

The Shanghai Composite Index closed modestly higher on Thursday, supported by gains in financial and resource stocks.

The benchmark rose 8.92 points, or 0.28 percent, to finish at 3,236.03 after trading between 3,217.10 and 3,265.28. The Shenzhen Composite Index gained 8.31 points, or 0.44 percent, to close at 1,909.45.

Among the most actively traded stocks, Industrial and Commercial Bank of China gained 0.75 percent, China Construction Bank rose 1.68 percent, China Merchants Bank advanced 0.86 percent, and Agricultural Bank of China added 0.59 percent. China Life Insurance increased 0.73 percent, Jiangxi Copper jumped 2.93 percent, and Aluminum Corp of China (Chalco) surged 5.00 percent. Yankuang Energy gained 0.75 percent, PetroChina rose 1.58 percent, and China Petroleum and Chemical (Sinopec) advanced 0.32 percent. Huaneng Power declined 0.47 percent, China Shenhua Energy gained 1.25 percent, Gemdale fell 0.44 percent, Poly Developments sank 0.80 percent, and China Vanke rose 0.29 percent.

Wall Street set a negative tone as major U.S. indexes initially edged higher on Thursday before reversing course and finishing lower after spending most of the session in the red.

The Dow Jones Industrial Average fell 68.42 points, or 0.16 percent, to close at 43,153.13. The NASDAQ Composite dropped 172.95 points, or 0.89 percent, to finish at 19,338.29, while the S&P 500 slipped 12.57 points, or 0.21 percent, to end at 5,937.34.

After Wednesday’s rally delivered the major indexes’ largest daily percentage gains in more than two months, investors paused to assess the near-term market outlook, contributing to choppy trading on Wall Street.

Traders also reviewed a range of U.S. economic reports, including weekly jobless claims, retail sales and import prices.

The figures largely matched expectations and reinforced optimism that the Federal Reserve will cut interest rates during the first half of the year.

Oil prices fell sharply on Thursday after Israel and Hamas agreed to begin implementing a ceasefire arrangement drafted and approved by the UN Security Council. February West Texas Intermediate crude futures settled $1.36 lower, or 1.7 percent, at $78.68 a barrel.

Domestically, China is scheduled to release a batch of economic data later Thursday morning, including fourth-quarter GDP figures and December readings for industrial production, retail sales, fixed-asset investment and unemployment.

GDP is expected to grow 1.7 percent quarter-on-quarter and 5.0 percent year-on-year, following gains of 0.9 percent and 4.6 percent, respectively, in the third quarter.

Industrial production is expected to remain at 5.4 percent year-on-year, while retail sales are projected to increase 3.5 percent annually, up from 3.0 percent in November. Fixed-asset investment is expected to hold at 3.3 percent, and the unemployment rate is forecast to remain unchanged at 5.0 percent.

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