By Riva Gold

Global stocks rebounded Tuesday, helped by a better-than-expected reading on the Chinese economy.

Data showed China's industrial sector picked up last month as an official gauge of factory activity rose to its highest level in two years.

U.S. futures and Asian stock markets moved higher, while the Stoxx Europe 600 rose 0.5% in the early minutes of trading.

Gains were led by the mining and energy sectors as Brent crude oil climbed 0.7% from its lowest level since September to $48.95 a barrel. Royal Dutch Shell PLC was among the biggest gainers after the company swung to a third-quarter profit from a year earlier.

Base metal prices also rose in the wake of Chinese economic data, supporting shares of resource companies.

In currencies, the British pound was steady against the dollar at $1.2239, holding on to Monday's gains after Bank of England Gov. Mark Carney said in a letter that he plans to serve an extra year in his post.

Earlier, shares in Hong Kong and Shanghai led Asian markets higher after the upbeat data on the Chinese economy. Japan's Nikkei Stock Average inched up 0.1%, while the dollar was flat against the yen at Yen104.9060 after the Bank of Japan left its stimulus program unchanged as expected but revised down its inflation forecasts.

Shares in Australia edged lower, however, while the Australian dollar rose sharply after the Reserve Bank of Australia kept its cash rate target unchanged at 1.5%.

In bond markets, the yield on 10-year German debt rose to 0.189%, while U.S. Treasury yields climbed to 1.858% from 1.834% on Monday. Yields move inversely to prices.

Write to Riva Gold at

(END) Dow Jones Newswires

November 01, 2016 04:57 ET (08:57 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.