Highly rated government debt and other havens like gold dropped after upbeat data on China’s sprawling factory sector reinforced expectations that a global growth slowdown will not morph into recession.

US and German sovereign bonds on Monday recorded their sharpest rises in yield in three weeks as investors shifted into riskier assets. The 10-year Treasury yield climbed 0.07 percentage points to 1.847 per cent, with the equivalent Bund yield up by the same margin to minus 0.289 per cent.

Gold was also under pressure, slipping 0.5 per cent to $1,455 a troy once, as the pan-European Stoxx 600 advanced 0.4 per cent. MSCI’s broad measure of Asian stocks outside Japan inched up 0.3 per cent, while S&P 500 futures pointed to gains of around 0.4 per cent for Wall Street’s main stock barometer.