By Marc Jones
LONDON (Reuters) - World shares hovered near record highs on Thursday after downbeat Chinese manufacturing data put pressure on Beijing for more stimulus and the Federal Reserve signaled an increase in U.S. interest rates is still some way off.
European markets opened largely subdued, however, as disappointing German purchasing manager data (PMI) offset an improvement in France. That left the region's main bourses <0#.INDEXE> down as much as 0.6 percent and investors preferring bonds.
The euro gained to $1.1150. Top euro zone leaders will meet later in Latvia, where Greek premier Alexis Tsipras hopes the broad outline of a cash-for-reforms deal will be accepted, staving off a default.
Worries over Athens' finances have escalated this year as the country's new government has pushed back on austerity imposed as part of its bailout packages.
"I think it is coming to a head," said Alvin Tan, a currency strategist at Societe Generale (PARIS:SOGN) in London. "It looks like it will be difficult for Greece to make it through June without a new cash disbursement, so I think we are coming to the point where a deal is needed very soon, probably within the next two weeks."
The dollar (DXY) lost ground as minutes from the Federal Reserve's April meeting bolstered the view that the Fed is not ready to raise U.S. rates. Its policymakers thought a move in June would be premature, leading traders to push back expectations for a rate increase to the turn of the year.
The European Central Bank, which recently started a 1 trillion-euro stimulus program, will release the minutes of its most recent meeting at 1130 GMT. The meeting was held before this month's bond sell-off, so the main focus is likely to be whether the ECB is concerned about funding Greece's banks.
FRAGILE CHINA
MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) ended little changed in Asian trading.
South Korean, Hong Kong and Malaysian shares slipped, while Australian stocks jumped on bargain hunting and emerging Asian currencies took advantage of the softer dollar.
Tokyo's Nikkei (N225) ended almost flat after touching a 15-year high. High-flying Chinese shares climbed another 1.2 percent as the third straight monthly contraction in Chinese factory activity bolstered stimulus bets.
"Under the current environment, any excuse seems good enough to cause a rally," wrote Gerry Alfonso, director of Shenwan Hongyuan Securities Co in Shanghai.
The recent surge in euro zone bond yields has stalled this week, partly in response to ECB policymakers saying the central bank would ramp up its bond buying for the next two months.
German 10-year yields, the benchmark for euro zone borrowing costs, were 1 basis point lower on Thursday at 0.62 percent, down from 2015 highs of 0.80 percent reached earlier this month.
Italian, Spanish and Portuguese 10-year yields were 3-4 bps lower at 1.82 percent
In commodities, U.S. crude
Hopes of future China stimulus helped lift copper of three-week low. Gold