Chinese shares rose to the highest level in seven years in volatile trade as bets that MSCI Inc will include mainland shares in its indexes overshadowed weaker shipments data. The ChiNext index of smaller and startup companies tumbled 4.67 percent to close at 3,704.55 points.

Bank of Communications Co climbed to its highest level in six years, pacing gains by financial shares, while Shen-zhen Infogem Technologies Co slumped by the 10 percent daily limit, pacing declines on the ChiNext.

The Shanghai Composite Index rose 2.2 percent to 5,131.88 points, its highest since January 2008, extending last week's 8.9 percent rally.

Data on Monday showed China's exports in May declined for a third straight month and imports slumped for a seventh. MSCI will on Tuesday decide in New York whether to add China's locally traded shares in its equity benchmarks.

"The market is looking ahead to whether MSCI will include A shares in its emerging-market indexes and that could create some wild swings in Chinese shares," said Bernard Aw, a Singapore-based market strategist at IG Asia Pte Ltd.

The Shanghai Composite's 100-day volatility measure was near its highest level in more than five years.