The global economy showed signs of improvement on Thursday with factory output improving in two of the world’s largest economies.
Euro zone flash composite purchasing manager’s index (PMI) rose to 51.7 in August, from 50.5 last month, beating estimates. It was the best reading since June 2011.
In China, HSBC’s preliminary reading of PMI data crossed the key 50-level, which signals expansion, for the first time in four months.
The FTSEurofirst 300 Index and the euro rose against the dollar after the news and China’s benchmark index outperformed other Asian stocks.
The boost to markets comes during a period of heightened tension over when the U.S. Federal Reserve could start tapering its $85 billion-a-month asset purchases program.