The China stock market has finished lower in five consecutive trading days, sliding more than 125 points or 4.7 percent along the way. The Shanghai Composite Index now rests just beneath the 2,670-point plateau although it's expected to find traction on Monday.
The global forecast for the Asian markets is cautiously optimistic thanks to easing trade war fears and a bump in crude oil prices. The European markets were mixed and the U.S. bourses moved higher and the Asian markets figure to follow the latter lead.
The SCI finished sharply lower on Friday following losses form the financial shares, property stocks and energy producers.
The Shanghai Composite Index tumbled 36.23 points or 1.34 percent to finish at 2,668.97 after trading between 2,665.59 and 2,730.33. The Shenzhen Composite Index dropped 24.73 points or 1.7 percent to end at 1,442.38.
Among the actives, China Construction Bank dropped 1.21 percent, while Bank of China shed 0.58 percent, Industrial and Commercial Bank of China eased 0.19 percent, China Merchants Bank lost 0.82 percent, China Life Insurance skidded 1.01 percent, China Petroleum and Chemical (Sinopec) slid 0.94 percent, PetroChina added 0.63 percent, China Shenhua Energy fell 0.35 percent, Gemdale retreated 0.92 percent, Poly Real Estate declined 0.54 percent and China Vanke eased 0.13 percent.
The lead from Wall Street suggests mild upside as stocks moved mostly higher on Friday after recovering from an early move to the downside.
The Dow climbed 110.59 points or 0.43 percent to 25,669.32, the NASDAQ added 9.81 points or 0.13 percent to 7,816.33 and the S&P 500 rose 9.44 points or 0.33 percent to 2,850.13. For the week, the NASDAQ fell 0.3 percent, the S&P gained 0.6 percent and the Dow jumped 1.4 percent.
Late-day buying interest was generated by reports that Chinese and U.S. negotiators are drawing up a road map for talks to try to end their trade impasse. The trade talks in Washington are set for Tuesday and Wednesday, just before the next round of tariffs on both sides kicks in on Thursday.
In economic news, the University of Michigan saw deterioration in U.S. consumer sentiment in August. Also the Conference Board noted a bigger than expected increase by its index of leading U.S. economic indicators in July.
Crude oil prices edged higher on Friday amid hopes that trade talks between U.S. and China this week will diffuse tensions and reduce fears of a decline in fuel demand. Crude oil futures for September ended up $0.45 or 0.7 percent at $65.91 a barrel.
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