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By Bloomberg

Chinese stocks led Asian shares higher, while the euro declined with industrial metals after European leaders gave Greece three days to enact reforms or face ejection from the currency union. Oil fell as Iran and world powers closed in on a nuclear deal.

The Shanghai Composite Index rose 2.3 percent by 12:31 p.m. in Tokyo, and a gauge of mainland companies in Hong Kong climbed 0.7 percent. The MSCI Asia Pacific Index added 1.2 percent, while Standard & Poor’s 500 Index futures pared an early loss. The euro dropped 0.3 percent to $1.1132. Nickel lost 2.3 percent, while U.S. crude slipped 1.5 percent.

Greek Prime Minister Alexis Tsipras was presented with a list of demands including spending cuts, tax increases and the return to Athens of creditor representatives with full access to ministers and a veto over relevant legislation. China reported a smaller-than-estimated drop in June imports, while exports also came in ahead of projections. A deal that will see sanctions against Iran lifted could be announced as soon as Monday.

“The market had started pricing in fears we’re going to see a terrible outcome from China and Greece, but we’ve started feeling more optimistic now,” said Koichi Kurose, Tokyo-based chief market strategist at Resona Bank Ltd. “Stock prices are reflecting hopes Greece will come to a resolution. China looks to have reached its lows.”

The Asia-Pacific stock gauge is climbing for a third day after falling to an almost six-month low on Wednesday. Japan’s Topix index advanced 1.8 percent and Australia’s S&P/ASX 200 Index added 0.8 percent.

The Shanghai Composite climbed as the number of companies halted from trading dropped by more than 400 Monday. As many as half of all listed shares were suspended during the rout that wiped more than $3 trillion of value from the country’s equity market.

Base Metals

Hong Kong’s Hang Seng Index was little changed and the Hang Seng China Enterprises Index erased a decline of as much as 1.1 percent. Price swings on the gauge of mainland companies reached the highest since 2012 last week.

The euro slipped 0.3 percent to 136.49 yen, after soaring 2.3 percent on Friday. Finnish Finance Minister Alexander Stubb said failure to meet the latest deadline could result in Greece’s suspension from the currency union.

The currency pared a retreat of as much as 0.7 percent versus the greenback Monday. Hedge funds and other large speculators left bets on euro declines virtually unchanged for a second week, according to the latest data available from the Commodity Futures Trading Commission.

Very Bad

Greece views the euro area’s demands, as expressed in a text from the Eurogroup, as very bad, according to a government official who spoke to reporters on the condition of anonymity. The country’s banks have been closed the past two weeks and it is running out of money, with the government in arrears to the International Monetary Fund and its second package of bailout aid expired.

The yen rose 0.1 percent to 122.67 per dollar. Yields on 10-year U.S. Treasuries were little changed at 2.39 percent after jumping eight basis points on Friday amid optimism over a Greek deal. Canada’s currency slumped 0.4 percent.

The Markit iTraxx Asia index of credit default swaps rose two basis points to 110.5 basis points, according to prices from Westpac Banking Corp.

Copper Slides

Copper lost 1.2 percent to $5,521.50 a dry metric ton in London, while nickel extended last week’s 6.2 percent tumble. Nickel traded at $11,000 a ton, taking this year’s loss beyond 27 percent. Price volatility in iron ore, Australia’s biggest export, climbed to a record last week amid the gyrations in Chinese equities.

West Texas Intermediate crude slipped to $51.97 a barrel, while Brent dropped 1.7 percent to $57.72.

Four officials party to the Iran talks said legal complexities and technicalities delayed agreement on a deal that could result in an increase in Iranian crude on world markets. The officials asked not to be named in line with diplomatic rules. Iran’s benchmark index climbed 1.2 percent on Sunday to a three-month high.

S&P 500 index futures were little changed after falling as much as 0.8 percent. The U.S. benchmark index advanced 1.2 percent on Friday, paring earlier losses to leave it little changed on the week, while the Stoxx Europe 600 index rose 2 percent to leave it up 1.4 percent last week.

U.S. equities maintained gains Friday after Federal Reserve Chair Janet Yellen said in a speech that she still expects to raise interest rates this year and repeated that the subsequent pace of increases will be gradual. The Fed is moving cautiously toward its first interest-rate increase in almost a decade as Yellen weighs conflicting pressures at home and from abroad.