European stocks rebound on mixed manufacturing data

Europe's main stock markets rebounded on Thursday following a weak finish to August, as traders digested worldwide manufacturing numbers.

Around 1030 GMT, London's benchmark FTSE 100 index was 0.1 percent higher.

In the eurozone, Frankfurt's DAX 30 rose 0.6 percent and the Paris CAC 40 jumped 1.1 percent compared with Wednesday's close.

"The FTSE is underperforming... driven by a combination of a stronger pound and further downside pressure on commodities," said Craig Erlam, senior market analyst at Oanda trading group.

Sterling rallied Thursday after data showed Britain's manufacturing activity hit a 10-month high in August, rebounding strongly from a slump triggered by the country's vote in favour of exiting the European Union.

A stronger pound tends to hurt the overall FTSE with its composition made up of companies exporting worldwide.

The pound's slump caused by longer-term Brexit fears lifted export orders last month, according to the closely-watched IHS Markit UK Manufacturing purchasing managers' index.

The PMI hit 53.3 in August, up from 48.3 in July which was a 41-month low.

Analysts' consensus forecast had been for a reading of 49 in August, just below the 50 mark that indicates growth.

Separate Markit data revealed a contraction for the eurozone's manufacturing PMI.

"Over in the eurozone the manufacturing situation wasn't as perky, the region-wide reading unexpectedly slipping to a three-month low of 51.7," noted Spreadex analyst Connor Campbell.

"However, this didn't matter to the DAX and CAC, with the euro's slump against the pound" providing support.

In Asia on Thursday, indices were mixed after a surprise pick-up in Chinese factory activity that indicated stability in the world's number two economy -- but fuelled fears that authorities would hold off from introducing fresh stimulus.

Trading was cagey across the region following oil-linked losses in New York and ahead of Friday's closely watched US jobs report that could precipitate another Federal Reserve interest rate hike.

Beijing said its purchasing managers index of manufacturing activity hit 50.4 last month, its highest level since October 2014 and suggesting the economy is stabilising following a series of policy tweaks aimed at kick-starting growth.

China's economy is growing at its slowest rate for a quarter of a century.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.1 percent at 6,784.66 points

Frankfurt - DAX 30: UP 0.6 percent at 10,653.11

Paris - CAC 40: UP 1.1 percent at 4,485.72

EURO STOXX 50: UP 1.0 percent at 3,052.06

Tokyo - Nikkei 225: UP 0.2 percent at 16,926.84 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,063.31 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 23,162.34 (close)

New York - DOW: DOWN 0.3 percent at 18,400.88 (close)

Euro/dollar: DOWN at $1.1147 from $1.1156 late Wednesday

Dollar/yen: UP at 103.67 yen from 103.43 yen

Pound/dollar: UP at $1.3240 from $1.3128