Global stocks tick up on upbeat China factory reports, trade talk hopes

  • Global stocks tick up on upbeat China factory reports, trade talk hopes

Global stocks tick up on upbeat China factory reports, trade talk hopes

European stocks had initially rebounded toward four-year highs, as decent manufacturing data in China and renewed optimism over a trade deal between Washington and Beijing eclipsed last week's jitters.

Mainland Chinese shares also went higher, with the CSI300 bluechip index was up 0.59% on the three-month low hit on Friday.

Japan's Nikkei 225 rose 1% on Monday, while South Korea's Kospi added 0.4%.

The MSCI index of world stocks MIWD00000PUS ticked up 0.1% and stands within reach of all-time peak hit in January 2018.

In Europe, London's FTSE added 0.4 percent, Germany's DAX increased 0.6 percent and France's CAC was 0.1 percent higher. The survey seems to suggest domestic demand is strong enough even if one cannot have unbridled optimism on the economic outlook, "said Naoki Tashiro, president T.S. China Research". -China trade negotiations, investors are nonetheless holding the broad view that a further escalation in the trade war can be avoided.

Trump expressed concern negotiations might be affected by legislation he signed last week that is meant to buttress Hong Kong's status as a semi-autonomous Chinese territory amid tension over anti-government protests.

"It looks a bit hard for two countries' leaders to shake hands and sign a deal this month".

"This improvement in the manufacturing (purchasing managers index) is important because we can say with more certainty than at the beginning of the year that China's macro outlook is indeed stabilising", Aninda Mitra, senior sovereign analyst at BNY Mellon Investment Management, told Bloomberg News.

"Markets will consider such an arrangement as a de facto deal whether they officially sign it or not", he said.

Beijing's top priority in any phase one trade deal with the United States is the removal of existing tariffs on Chinese goods, China's Global Times newspaper reported on Sunday, amid uncertainty on whether the two sides can end a 17-month trade war that has depressed global growth.

China's Foreign Ministry last week lambasted USA legislation signed by President Donald Trump on Wednesday backing protesters in Hong Kong as a serious interference in Chinese affairs.

By 0403 GMT, China's A-shares were trading at a premium of 28.84% over the Hong Kong-listed H-shares.

Also helping to support the markets are the retail slaes numbers from the Thanksgiving weekend.

The euro stood little changed at $1.10175, bouncing back from seven-week low of $1.0981 hit in USA trade.

The gains chipped away at some of the huge losses suffered Friday after reports said Russian Federation was looking to delay any further output reductions until April's gathering. The Shenzhen composite advanced 0.824 percent to 1,772.09.

Oil prices recovered after slumping on Friday on record high USA crude production.

HK- Shanghai Connect daily quota used 1.9%, Shanghai- HK daily quota used 1.9%. U.S. West Texas Intermediate crude gained 2.52 percent to $56.56 per barrel.