SHANGHAI, July 2 (Reuters) - London copper fell back on Monday, surrendering part of its 4-percent gain in the previous session, after data at the weekend showed a factory slump in Asia's two biggest exporters, China and Japan, had deepened in June.
The decline in the two countries' purchasing managers' index (PMI) fanned concerns over demand for industrial metals and took some shine away from last week's policy breakthrough in the euro zone, where leaders greed to expand the use of rescue funds in ways that would ease market pressures on indebted countries.
Three-month copper on the London Metal Exchange was down 0.8 percent at $7,630 per tonne by 0115 GMT, after surging 4.1 percent on Friday - its largest single-day rise since Nov 30.
The most-active October copper contract on the Shanghai Futures Exchange edged up 0.5 percent to 55,540 yuan ($8,700) per tonne, catching up with London's gains and after rising 1.9 percent in the prior session.
A factory slump in Asia's two biggest exporters China and Japan deepened in June as crumbling orders from abroad dragged activity to seven-month lows, heightening worries that the health of the global economy is deteriorating.
The data tempered market optimism over Europe's surprise deal last week. Under pressure to prevent a catastrophic breakup of their single currency, euro zone leaders had agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states without them having to adopt extra austerity measures.
Investors are keeping an eye on the U.S. economy after consumer spending growth there ground to a halt in May as auto purchases flagged, while confidence ebbed to a six-month low in June, the latest signs of trouble for the economy.
Federal Reserve officials on Friday said they were keeping an eye out for any signs that slowing growth is raising deflation risks but differed on how worrisome sluggish job markets are for the modest U.S. economic recovery.
Asian shares rose on Monday with sentiment brightening at the start of the third quarter after Europe agreed to shore up the region's banks, while investor attention is turning to the health of the U.S. economy.
The rally in the euro and high-beta currencies took a breather on Monday as investors looked for fresh reasons to extend a risk rally sparked by initial euphoria over perceived progress in efforts to resolve Europe's debt crisis.
0230 China HSBC Mfg PMI Final Jun 2012 CNPMIC=ECI
0500 India HSBC Markit Mfg PMI Jun 2012 INPMI=ECI
0743 Italy Markit/ADACI Mfg PMI Jun 2012 ITRPMI=ECI
0753 Germany Markit/BME Mfg PMI Jun 2012 DEPMIM=ECI
0758 EZ Markit Mfg PMI Jun 2012 EUPMI=ECI
1400 U.S. ISM Manufacturing PMI Jun USPMI=ECI
1400 U.S. Construction spending mm May USTCNS=ECI
Russia HSBC Mfg PMI Jun 2012 RUPMIM=ECI
Base metals prices at 0115 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7630.00 -60.00 -0.78 0.39
SHFE CU FUT OCT2 55540 300 +0.54 -0.16
LME Alum 1897.00 -14.00 -0.73 -6.09
SHFE AL FUT OCT2 15485 95 +0.62 -2.24
HG COPPER SEP2 346.25 -3.40 -0.97 0.77
LME Zinc 1854.00 -26.00 -1.38 0.49
SHFE ZN FUT OCT2 14720 135 +0.93 -0.51
LME Nickel 16620.00 -110.00 -0.66 -11.17
LME Lead 1851.00 -10.00 -0.54 -9.04
SHFE PB FUT 14835 160 +1.09 -2.98
LME Tin 18800.00 25.00 +0.13 -2.08
LME/Shanghai arb 1173
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3541 Chinese yuan)