(Reuters) - European shares inched higher on Monday, tracking gains in Asian markets on encouraging factory output and retail sales data from China, which provided some respite from worries about slowing global growth.
The upbeat data showed that the world's No.2 economy may be stabilizing, but economic growth slowing to its weakest pace in at least 27 years had investors betting that Beijing will continue to roll out more stimulus.
After breaking a five-week winning streak to end last week 0.8% lower, the pan-region benchmark index (STOXX) rose 0.4% by 0709 GMT.
Trade-sensitive German shares outperformed, rising 0.7% on broad-based gains after a senior U.S. official said the United States government may approve licenses for companies to re-start new sales to blacklisted Chinese telecoms equipment maker Huawei in as little as two weeks.
Markets took it as a sign that President Donald Trump's recent effort to ease restrictions on the Chinese company could move forward quickly.
German chipmaker Infineon (DE:IFXGn) and peers ASM (AS:ASMI) and STMicroelectronics (MI:STM) rose between 0.9% and 1.5%.