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European, U.S. Stock-Index Futures Rally on China Manufacturing


European and U.S. stock-index futures climbed and Asian equities rallied after Chinese manufacturing accelerated and Australia’s economy expanded at the fastest pace in three years.

BHP Billiton Ltd. and Rio Tinto Group gained more than 2 percent in Sydney trading as copper climbed to a four-month high and crude oil advanced. Shares of Vivendi SA, owner of the world’s largest record company, and Vinci SA, the biggest builder, may advance after earnings topped estimates.

Futures on the Euro Stoxx 50 Index rose 0.8 percent to 2,637 at 7:17 a.m. in London. The U.K.’s FTSE 100 Index will open 25 points higher, according to IG Markets. Standard & Poor’s 500 Index futures gained 0.8 percent and the MSCI Asia Pacific Index rose 1.1 percent.

“September is starting with a flourish,” said Ben Potter, a Melbourne-based market strategist at IG Markets. “Asian markets are mostly up on a combination of factors and the support is set to continue into the European session.”

The Stoxx Europe 600 Index lost 1.6 percent last month, extending the gauge’s slump from this year’s high in April to 7.7 percent, after disappointing U.S. data from employment to home sales raised concern the recovery of the world’s largest economy may be faltering. A report today may show American manufacturing expanded in August at the slowest pace in almost a year, according to economists.

Fed Minutes

The S&P 500 rose less than 0.1 percent yesterday as regulators approved a Chinese investment in Morgan Stanley and home prices and consumer confidence gained. U.S. stocks had earlier declined as minutes from the latest Federal Open Market Committee meeting disappointed investors speculating the central bank would resume quantitative easing, or the purchase of debt, to bolster the economy.

China’s purchasing managers’ index rose to 51.7 from 51.2, exceeding forecasts, according to a government-backed report, signaling the economy’s slowdown will be limited. A separate PMI released by HSBC Holdings Plc and Markit Economics gained to 51.9 from 49.4. In Australia, gross domestic product advanced 1.2 percent from a revised 0.7 percent in the first quarter. That beat the median economist estimate for a 0.9 percent gain, Bloomberg data shows.

BHP Billiton, the world’s largest mining company, rallied 2.3 percent to A$37.91 in Sydney trading while Rio Tinto, the third-biggest, jumped 3.1 percent to A$72.24.

Copper Climbs

Copper advanced to the highest level since April in London, climbing as much as 2 percent to $7,585 a metric ton. Crude oil rebounded from a one-week low to trade above $72 a barrel in New York.

Vivendi might advance as the owner of Universal Music Group raised its full-year targets after first-half profit growth beat analysts’ estimates. First-half profit rose 4 percent to 1.53 billion euros ($1.94 billion), compared with an average analyst estimate of 1.49 billion euros.

Vinci may gain after the world’s biggest builder reported a 1.9 percent increase in first-half profit to 703 million euros, beating analysts’ average estimate of 681 according to a Bloomberg survey.

Rival Bouygues SA boosted its full-year sales target to 30.4 billion euros, up from a June prediction of 30.1 billion euros. Second-quarter profit declined to 351 million euros from 388 million euros, dragged down by its Colas SA road- construction unit.

Shares of Land Securities Group Plc might move after JPMorgan Chase & Co. raised its recommendation for the U.K.’s largest real estate investment trust to “overweight” from “neutral.”