Global stock markets spring higher

LONDON: Global stock markets rose Friday as investors reacted to a mixed batch of global economic data, and appeared confident that US-China trade talks will yield a positive outcome.

European stock markets showed solid gains by the mid-afternoon, with Frankfurt's rising well over one percent, and Wall Street also up at the start of trading in New York.

"The first day of the new month has started positively for equities," said Fawad Razaqzada, market analyst at Forex.com.

"Sentiment improved on the back of positive US-China trade talks and as major central banks have re-iterated the need for interest rates to remain low for longer," he said.

This put markets "on course for a more positive end to the week", said Craig Erlam, senior market analyst at Oanda trading group.

- Asia set the tone -

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A better-than-expected reading on US economic growth lifted sentiment earlier in Asia, while optimistic comments from a top White House economic advisor on the China-US trade talks also provided support.

The gains helped Asia to another strong week despite disappointment over US-North Korea talks in Hanoi and renewed tensions in Kashmir.

Shanghai's main stocks index led the gains, surging 1.8 percent and extending a rally that has seen it climb by about a fifth since the start of the year thanks to expectations over the US-China trade talks.

Adding to the interest in mainland equities was news that index compiler MSCI will increase the weighting of Chinese-listed stocks in its benchmark indices and nearly double the number of companies included.

With those indices used by global funds for their investments, the move is expected to attract tens of billions of dollars more to the country's markets.

- Trade, Brexit -

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In Europe, eurozone annual inflation rose to 1.5 percent in February, up from 1.4 percent in January, while unemployment in the single currency area remained stable at 7.8 percent.

On currency markets, the dollar traded mixed, while the pound eased amid jitters about Britain leaving the European Union this month, but investors still hoped that there will be some kind of Brexit deal in place by then.

"The market is now moving on the premise that the US-China talks are making progress, and that 'a no-deal Brexit' would be avoided," Resona Bank said in a commentary.

However, it warned: "It should be noted that there are risks that ultimately there may be no deals."

- Key figures around 1435 GMT -

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London - FTSE 100: UP 0.6 percent at 7,117.21 points

Frankfurt - DAX 30: UP 1.3 percent at 11,665.84

Paris - CAC 40: UP 0.7 percent at 5,277.54

EURO STOXX 50: UP 0.8 percent at 3,324.78

New York - Dow: UP 0.8 percent at 26,113.56

Tokyo - Nikkei 225: UP 1.0 percent at 21,602.69 (close)

Hong Kong - Hang Seng: UP 0.6 percent at 28,812.17 (close)

Shanghai - Composite: UP 1.8 percent at 2,994.01 (close)

Euro/dollar: UP at $1.1387 from $1.1374 at 2200 GMT

Pound/dollar: DOWN at $1.3256 from $1.3263

Dollar/yen: UP at 111.82 yen from 111.39 yen

Oil - Brent Crude: DOWN 25 cents at $66.06 per barrel

Oil - West Texas Intermediate: DOWN 17 cents at $57.06