China's manufacturing sector activity contracts for first time in over two years

Activity in China's manufacturing sector contracted in December for the first time in more than two years in a fresh blow to the economy. The official Purchasing Manager's Index (PMI) fell to 49.4 in December, data showed on Monday. The 50-point index mark separates expansion from contraction on a monthly basis. Analysts surveyed by Reuters had forecast the PMI to slip to 49.9 from 50.0 in November. China's economy has been slowing this year and analysts expect a further softening over coming months, hurt by a Sino-U.S. trade dispute and cooling global growth.