The Shanghai Composite Index gave up 19.71 points, or 0.50 percent, on Thursday to close at 3,926.96. It had traded between 3,924.64 and 3,968.48 during the day.
Energy, mining and technology stocks pulled it down. That makes two losing sessions out of three since a five-day winning streak ended, a run in which the index had jumped almost 160 points, or 4.2 percent. It now sits just above 3,925, though analysts expect it to turn up again on Friday.
Wall Street lifts the outlook
The forecast for Asian markets is mixed to higher, based on optimism about interest rates. European bourses finished down and American ones up, and Asia is expected to take its cue from the U.S.
The major U.S. averages opened higher on Thursday, faded around midday, then rebounded into the close. The Dow rose 69.72 points, or 0.13 percent, to 53,839.99. The Nasdaq jumped 214.54 points, or 0.81 percent, to 26,803.03, and the S&P 500 added 50.49 points, or 0.65 percent, to 7,798.99.
The push came after the Labor Department reported that U.S. producer prices were unexpectedly flat in July. Wednesday’s report had shown only a slight uptick in consumer prices, and last Friday’s had shown an unexpected drop in jobs. Together the figures fed hopes on rates.
Traders have noticed. According to CME Group’s FedWatch Tool, the odds of a quarter-point Federal Reserve rate increase at its September meeting fell to 34.6 percent from 55.0 percent a week earlier.
Oil slides
Crude prices dropped on Thursday after energy agencies reported that global oil demand is set to fall more heavily than expected. West Texas Intermediate for September delivery lost $1.76, or 2.11 percent, to $81.51 a barrel.
