Chinese Stocks Climb With Copper on Factory Data

Chinese stocks rose with copper as an official manufacturing gauge showed a third month of expansion.

The euro slid on concern about the impasse between Greece and its creditors, while oil and crops fell.

The Shanghai Composite Index gained 2.2 percent by 10:45 a.m. local time, extending its advance after people familiar with the matter said policy makers are considering doubling the size of a clean-up program for shaky local government finances.

The MSCI Asia Pacific Index lost 0.4 percent, paring an earlier 0.9 percent decline.

Standard & Poor’s 500 Index futures added 0.1 percent following the measure’s retreat Friday.

The euro weakened 0.3 percent against the dollar and the Korean won slid.

Brent oil snapped a two-day surge as data showed Saudi Arabia maintained record output.

Corn futures lost 0.5 percent.

China’s official factory gauge climbed last month, suggesting monetary easing and relaxation of fiscal rules have helped cushion the economy.

The final reading of a private measure rose from the preliminary estimate, while still signaling a contraction.

Greece faces a week of tough decisions as creditors show no signs of budging over what it will take to seal an accord.

Unexpectedly weak U.S. economic data Friday stoked speculation a first-quarter slowdown may be lingering.

China’s “stock market has consolidated and is likely to grow at a slower pace rather than just straight up,” said Wang Zheng, the Shanghai-based chief investment officer at Jingxi Investment Management Co.

“The stabilization of the economy indicated by the PMI data has also helped the sentiment.”

Hong Kong’s Hang Seng Index rose 0.5 percent, erasing a 0.7 percent drop.

The Shanghai gauge approached the 5,000 level last week for the first time since 2008, before sliding on the final two days of the week amid volatile trading.

The measure has more than doubled over the past 12 months.

China Data

The manufacturing purchasing managers’ index from China’s Federation of Logistics and Purchasing was 50.2 for May, up from 50.1 in April.

That compared with the 50.3 median estimate of economists surveyed by Bloomberg News. Readings above 50 signal expansion.

The HSBC Holdings Plc/Markit Economics China manufacturing PMI came in at 49.2, matching estimates and a third month of readings below 50.

“It’s nice to see we’ve got a number above 50, this will consolidate the picture for metals in China,” said Jonathan Barratt, chief investment officer at Ayers Alliance Securities.

“It’s mildly positive.”

Copper for delivery in three months on the London Metal Exchange gained 0.4 percent to $6,037.50 a metric ton. Prices on Friday slid 1.3 percent to cap the first monthly loss since January.

China is the world’s biggest consumer of the metal.

Japan’s Topix index lost 0.3 percent after closing at its highest level since 2007 on Friday, while the Nikkei 225

Stock Average dropped 0.4 percent from a 15-year high, following its longest run of daily gains since 1988.

Technology and consumer stocks drove Australia’s S&P/ASX 200 Index down 1.4 percent.

Korean Exports

The Kospi index in Seoul declined 0.8 percent and the won touched a 10-week low against the greenback after a report showed South Korean exports fell in May by the most in almost six years.

Markets in New Zealand, Singapore and Thailand are closed for holidays.

The world’s No. 1 economy contracted an annualized 0.7 percent in the first quarter, figures out Friday in the U.S. showed, supporting the image of a Fed that isn’t in a hurry to raise interest rates lest it derail the budding recovery.

Separate reports showed an unexpected drop in business activity and consumer confidence at a six-month low.

The euro dropped for the first time in four days, slipping to $1.0954 following a 2.1 percent decline in May.

Greece must make four payments totaling almost 1.6 billion euros ($1.78 billion) to the International Monetary Fund this month and its bailout package backed by the euro region expires at the end of June.

Brent, Crops

Brent fell 0.6 percent to $65.18 a barrel after jumping 4.8 percent on Friday.

Saudi Arabia pumped a record 10.25 million barrels a day in May, unchanged from April and the most in a monthly Bloomberg survey going back to 1989.

The Organization of Petroleum Exporting Countries will probably maintain its collective quota at 30 million barrels a day when it meets June 5 in Vienna, according to a separate survey last month.

Crop prices declined as hedge funds accumulated the most bearish bets ever on crops from corn to soybeans after a mix of sunshine and rain created almost perfect growing conditions for U.S. farms.

Corn futures for July delivery lost 0.5 percent to $3.4950 a bushel, while wheat fell 0.6 percent following Friday’s 2.4 percent slump.

Soybean futures retreated 0.7 percent.