Japanese stocks fell, after the Topix index posted its steepest monthly gain since April 2013, as a China factory gauge signaled a third month of contraction. Non-ferrous metal producers led declines.

The Topix retreated 1.2 percent to 1,538.97 as of 9:00 a.m. in Tokyo, after surging 10 percent last month. The Nikkei 225 Stock Average lost 1.3 percent to 18,844.69 on Monday. The yen traded at 120.51 per dollar, strengthening for a second day after the Bank of Japan held off from adding to monetary easing on Friday. China’s official factory gauge — the first key economic indicator for this quarter — came in at 49.8 in October, missing economists’ estimates and holding below 50, the line between expansion and contraction.

China’s official non-manufacturing purchasing managers index, a barometer of services and construction, fell to 53.1 from 53.4 in September, the weakest since December 2008.

E-mini futures on the Standard & Poor’s 500 Index slipped 0.2 percent after the underlying measure fell 0.5 percent on Friday, closing out October with an 8.3 percent gain, the best month in four years. The Stoxx Europe 600 Index advanced 8 percent, its biggest monthly rally since July 2009.

Source: Bloomberg