The pan-European Stoxx 600 edged up 0.1% in early trade, autos leading the way with a 0.6% gain while utilities stocks fell 0.9%.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4%, while Japan's Nikkei .N225 and Australian benchmark were up 0.3% and 0.6%, respectively, although a U.S. public holiday kept activity somewhat subdued.

“Stocks and bonds rallied together as the markets were betting on interest rate cuts at the European Central Bank and the U.S. Federal Reserve,” said Noriko Miyoshi, head of fixed income at Simplex Asset Management in Tokyo.

· Japanese stocks rose on Thursday, tracking Wall Street's gains on expectations that the US Federal Reserve will start cutting interest rates after the latest data signalled a slowdown in the US economy.

The Nikkei share average ended 0.3 per cent higher at 21,702.45 in thin trading as US financial markets were closed for a national holiday on Thursday.

Japanese stocks were supported by optimism for a looser monetary policy in the United States, but investors were also cautious about the potential impact on the yen.

Japanese stocks were supported by optimism for a looser monetary policy in the United States, but investors were also cautious about the potential impact on the yen.

"Investors were worried that Japanese shares may suffer from a side effect of the stronger yen," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

· China stocks closed lower on Thursday weighed down by a slump in top consumer shares, even as investors awaited developments around Sino-U.S. trade talks.

The blue-chip CSI300 index fell 0.5% to 3,873.10, while the Shanghai Composite Index lost 0.3% to 3,005.25.

Caution remained as market participants kept an eye on the progress of Sino-U.S. trade talks.

Top representatives from the United States and China are arranging to resume talks next week to try to resolve a year-long trade war between the world’s two largest economies, Trump administration officials said on Wednesday.

Reference: CNBC, Reuters