June 1 (Reuters) - Canada’s main stock index recouped early losses on Monday helped by tentative signs of a rebound in business activity and as a milder-than-feared U.S. response to China also boosted sentiment.
* Canadian manufacturing activity contracted for the third straight month in May, but the pace of decline was less severe than in April, data showed on Monday.
* Escalating U.S.-China tensions took the shine off a solid month of gains for Canadian equities in May, but late on Friday, U.S. President Donald Trump did not pull out of a Phase 1 trade deal with Beijing, as many had feared he would.
* At 10:59 a.m. ET (1459 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 58.66 points, or 0.39%, at 15,251.49.
* The energy sector dipped 0.1% as U.S. crude prices were down 1.9% a barrel, while Brent crude lost 0.3%.
* The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.2% as gold futures fell 0.3% to $1,732.5 an ounce.
* On the TSX, 136 issues were higher, while 91 issues declined for a 1.49-to-1 ratio favouring gainers, with 70.19 million shares traded.
* The largest percentage gainer on the TSX was pot producer Hexo Corp, up 11.2%, after the company’s Belleville plant received a sales license.
* Canopy Growth Corp fell 9.5%, the most on the TSX, after multiple brokerages lowered their ratings on the stock.
* The most heavily traded shares by volume were Hexo Corp, Air Canada and StageZero Life Sciences Inc.
* The TSX posted three new 52-week highs and no new low.
* Across all Canadian issues there were 17 new 52-week highs and two new lows, with total volume of 126.64 million shares. (Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel)