Copper extended gains on Monday during Asian trading hours on a surge of positive sentiment in China as investors speculated whether Beijing would move to further tighten monetary policy this month. Investors were also encouraged by data last week showing that US manufacturing grew at a surprisingly strong pace in June, buoying hopes that the global economy is starting to shake off recent weakness.
The most-active September copper contract on the Shanghai Futures Exchange jumped 1.7 percent to close at 70,770 yuan per tonne. A US Institute for Supply Management report showed that its June index of national factory activity rose to 55.3 from 53.5 the previous month. The reading topped expectations for a fall to 51.8, according to a Reuters poll of economists. "There is a broad rally in commodities and shares in China today after expectations of an interest-rate rise last Friday did not come to pass and released some pent up demand for risk assets by investors," said Jinrui Futures analyst Zhao Kai.
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