Global Markets recover as risk of Syria attack eases

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Emerging stocks, currencies and bond prices rose on Monday, boosted by stronger Chinese data and ebbing chances of an imminent Western military strike on Syria.

Additionally, Factory activity in China, the world's largest emerging economy, expanded for the first time in four months in August, according to Markit/HSBC PMI data.

The MSCI emerging equities index rose 0.7 percent to one-week highs and has recouped most of the 3 percent losses made early last week on concern about the possible U.S. military-led strike.

U.S. markets are closed for a holiday on Monday.

In Turkey assets rebounded in a catch-up play after a holiday on Friday. Turkish stocks rose more than 2.5 percent to a one-week high and the lira jumped more than 1 percent.

Manufacturing activity picked up in August, above the 50 level which indicates expansion.

The shekel hit a one-week high and has recovered nearly 2 percent from 12-week lows plumbed last week.

Dubai stocks, which were highly volatile last week, dipped after gaining 3 percent on Sunday.

However, the easing in Syrian tension reduced demand for the Japanese yen which is often sought for its safety in a time of crisis. This saw the dollar gain 1.2 percent to 99.38 yen, its highest level in a month.

European shares reflected the brighter economic outlook gaining 1.5 percent in early trading, with Britain's FTSE 100 up as much as 1.3 percent and Germany’s DAX up 1.6 percent at one point.

Oil and gold prices fell as investors unwound their positions because the U.S. has postponed a military strike against the Syrian government.

Brent crude prices dropped 0.5 percent reaching less than $113.50 a barrel, recording its third day of declines. It had touch a six-month peak of $117.34 last week on concerns thetas. Military intervention could lead to retaliation and disrupt crude supply in the Middle East region, which pumps a third of the world's oil.

Safe-haven gold dipped 0.25 percent to around $1,392 an ounce after falling as low as $1,379.44, a one-week trough, earlier in the session.

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