San Francisco Frontiers - European stocks climb after Asia rout

Paris and Frankfurt were up nearly one percent and London was not far behind around midday, with all eyes on the American data for clues on the timing of an expected rise for US interest rates.

South Korea's Kospi index ended down nearly eight percent as investors unwound huge bets on the AI sector that have propelled stock markets to record highs.

Shares in chip giant SK hynix dived more than 14 percent and Samsung over nine percent.

The Tokyo stock market shed 2.5 percent, while Chinese indices closed mixed.

"European stock markets rose Thursday ahead of the monthly US jobs report and a holiday-shortened week on Wall Street, where the story remains firmly focused on AI," noted Neil Wilson, investor strategist at Saxo UK.

"Wall Street and global equities had a bumper second quarter but the story through June was more mixed and July has begun on a bit of a bum note for the AI trade.

"A brutal selloff in... AI-related hardware stocks on Wall Street yesterday hit Asian equities overnight with Seoul down hard."

All eyes were on the US jobs figures, one day after data from payroll firm ADP showed the US private sector added 98,000 roles last month, less than the 120,000 expected.

While the Federal Reserve is preparing to hike interest rates after the US-Iran war sent energy costs soaring, its new boss Kevin Warsh on Wednesday said price pressures had "come down" in recent weeks.

Nevertheless, Warsh emphasised his commitment to return US inflation to the Fed's two percent target.

The dollar dipped against main rivals after strong gains in recent sessions, which saw the yen hit a 40-year low.

Oil prices extended a retreat Thursday, seen since the United States and Iran began talks to end their conflict and keep the Strait of Hormuz open permanently.

Following the two sides' indirect discussions in Doha on Wednesday, US President Donald Trump, as well as mediators Qatar and Pakistan, offered signs that diplomacy was holding, despite exchanges of fire at the weekend.

Hong Kong's flagship airline Cathay Pacific meanwhile announced it would resume flights to the Middle East.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.5 percent at 10,526.06 points

Paris - CAC 40: UP 0.8 percent at 8,403.37

Frankfurt - DAX: UP 0.9 percent at 25,257.37

Seoul - Kospi: DOWN 7.9 percent at 7648.09 (close)

Tokyo - Nikkei 225: DOWN 2.5 percent at 68,733.15 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 23,055.03 (close)

Shanghai - Composite: DOWN 2.0 percent at 4,028.90 (close)

New York - Dow: FLAT at 52,305.24 (close)

Dollar/yen: DOWN at 161.46 yen from 162.52 yen on Wednesday

Euro/dollar: UP at $1.1404 from $1.1380

Pound/dollar: UP at $1.3327 from $1.3282

Euro/pound: DOWN at 85.56 pence from 85.68 pence

Brent North Sea Crude: DOWN 1.2 percent at $70.68 a barrel

West Texas Intermediate: DOWN 1.4 percent at $67.63 a barrel

burs-bcp/ajb/cw

I.Wright--SFF