- AstraZeneca down after noting "some" Grade 5 events in lung cancer anti-body drug trail
- FTSE 100 up 0.2%, FTSE 250 adds 0.4%
- June S&P Global/CIPS UK Manufacturing PMI fell to 46.5 from 47.1 in May
July 3 (Reuters) - British shares rose on Monday as mining stocks gained on higher metal prices and other Chinese-exposed companies firmed on hopes of more policy support from Beijing, while AstraZeneca dropped after the drugmaker reported some adverse event in a trial.
The blue-chip FTSE 100 gained 0.2%, while the more domestically-focussed FTSE 250 midcap index rose 0.4%.
Industrial metal miners advanced 2.3% as prices of base metals rose, buoyed by improved sentiment.
Also boosting the sub-index, Anglo American advanced 3% and was the top gainer on the FTSE 100 after the company's unit De Beers Group and the Botswana government agreed on a new diamond sales deal.
AstraZeneca slipped 4.5% after the company said it had observed some adverse events in a late-stage lung cancer drug trial.
China-exposed banks HSBC and Standard Chartered rose 0.7% and 1.2%, respectively.
China's central bank said on Friday it would implement prudent monetary policy in a "precise and forceful manner" to support economic growth and employment, while a private sector survey showed that China's factory activity growth slowed in June.
Heavyweight energy stocks added 1.2%.
UK's FTSE 100 posted a quarterly decline in the April-June period despite reaching record highs earlier this year on volatile commodity prices and still-high inflation prompting more monetary policy tightening.
"Everyone is ... waiting to see where interest rates are going to go ... the UK has surprised more than others (on inflation), so there is reason to believe that this next quarter could still be a bit volatile," said Georgina Cooper, UK equity portfolio manager at Newton Investment Management.
A softer pound also added to the gains on the exporter-heavy FTSE 100.
A survey showed the pace of decline in Britain's manufacturing sector steepened in June and optimism faded despite weakening price pressures.
Reporting by Shashwat Chauhan in Bengaluru; Editing by Rashmi Aich
Source: Reuters