China's PMI at five-month high

Index pulled up by output and new orders while employment still lags behind

The preliminary Purchasing Managers Index for Chinese manufacturing in May beat expectations with a five-month high, suggesting the world's second-largest economy is stabilizing.

The PMI, released by HSBC Holdings Plc and Markit Economics, was 49.7, compared with a 48.3 median estimate from analysts. April's final reading was 48.1. Still, a reading below 50 reflects contraction. A final May reading is expected on June 3.