China Stocks Ease In Cautious Trade

Chinese markets saw cautious moves today as the two days of talks between the US and China are under way in an attempt to come to a mutual deal on the lingering trade war. However, the recent uptick in the benchmark Shanghai Composite index, which had dropped to a four year low in last week of December, is being followed by some corrective selling pressure now. Weak economic data releases and a general slackness in the financial conditions are weighing on the sentiments as well. The benchmark index ended down 0.26% at 2526.46 today after hitting its three week high yesterday.

China manufacturing sector fell into contraction in December with a PMI score of 49.4, the latest survey from the National Bureau of Statistics said last week. That's down from the no-change mark 50.0 in November, falling beneath that mark and into contraction. A score above 50 signals expansion. The bureau also said its non-manufacturing PMI climbed to 53.8, up from 53.4 in the previous month. As a result of the two scores, the bureau's composite index came in at 52.6 - down from 52.8 a month earlier.

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