Stocks started the month on an upswing Thursday as investors focused on a rebound in oil prices and a better-than-expected reading on the Chinese economy.

The Stoxx Europe 600 rose 0.5% in the early minutes of trading, with bank shares climbing ahead for a third straight session. Futures pointed to a 0.3% opening gain for the S&P 500, on track to reverse Wednesday's losses.

Mining and energy companies advanced as oil prices climbed back slightly from a steep drop on Wednesday. Brent crude oil was up 0.7% at $47.20 a barrel after a 2.7% fall in the previous session.

Earlier, shares in Japan and Hong Kong advanced after China's official manufacturing PMI beat market expectations and rose to the highest levels since October 2014. The Hang Seng gained 0.6%, although stocks in Shanghai closed with losses. Trading volumes were muted.

In currencies, the dollar was broadly steady as traders looked ahead to Friday's monthly U.S. jobs report. The labor market is closely watched by Federal Reserve officials as they contemplate further interest rate rises.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

September 01, 2016 04:05 ET (08:05 GMT)

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