Copper prices buoyed by stronger PMI

Domestic commodities got a lift Wednesday after a highly watched preliminary indicator of Chinese factory output showed signs of an economic recovery.

The most traded copper contract on the Shanghai Futures Exchange (SHFE) rose 0.38 percent to close at 57,500 yuan ($9,196) per ton after opening a shade below par.

Copper and other commodities got a boost after HSBC and Markit Economics released their October flash purchasing managers' index (PMI) for manufacturing. The overall index rebounded to 49.1 from 47.6 in September, according to the Australian bank ANZ.

"Every sub-index signaled better prospects for growth, adding further evidence of a pick-up for the fourth quarter," bank analysts wrote Wednesday. "Notably, the stocks of finished goods sub-index fell sharply over the month while new orders rebounded..."

The three-month copper contract on the London Metal Exchange (LME) was trading 0.7 percent higher at $7,910 per ton when the Chinese mainland markets closed Wednesday.

Chinese soybean futures also rose as market sentiment improved after a decline in international markets overnight. The most-traded soybean contract on the Dalian Commodity Exchange, for May delivery, rose 1.93 percent to 4,859 yuan per ton.

Bad news out of the US and EU, including reports that five regions in Spain had their credit ratings downgraded, led to sharp drops in stock exchanges on both sides of the Atlantic. The S&P 500 index surrendered 1.4 percent to close at 1,413.11.