European markets climb as UK-Norway warship deal lifts defense shares

LONDON — European stock markets kicked off the new month higher, as the defense and health-care sectors received a boost from corporate news.

The Stoxx Aerospace and Defense index was up 1.65% at 10 a.m. in London (5 a.m. ET), after the U.K. government

Meanwhile, Asia-Pacific markets traded in mixed territory overnight as investors assessed China’s RatingDog manufacturing data for August. The metric — previously known as the Caixin Purchasing Managers’ Index — came in at 50.5, compared with a contraction of 49.5 the month before.

Data released Sunday showed that the country’s manufacturing PMI data came in at 49.4 in August, compared with 49.3 the month before.

Investors are also assessing India-China relations after leaders from both countries agreed that they are development partners, not rivals, during a two-day meeting of the Shanghai Cooperation Organization regional security bloc. Chinese President Xi Jinping is expected to deliver a speech at the summit.

U.S. financial markets are closed for the Labor Day public holiday on Monday.

— CNBC’s Amala Balakrishner contributed to this market report.