LONDON, Jan 9 Reuters European stock indexes rose in early trading on Monday, boosted by investors scaling back their expectations for U.S. Federal Reserve rate hikes and optimism about China39;s borders reopening.

U.S. jobs data on Friday, which showed a jump in the workforce and easing wage growth, was interpreted by investors as an indication that the Fed can be less hawkish. Global stocks rallied and the dollar dropped.

The upbeat market momentum continued on Monday, with Asian stocks up after China reopened its borders, bolstering the outlook for the global economy. MSCI39;s broadest index of AsiaPacific shares outside Japan rose to its highest in more than six months.

At 0811 GMT the MSCI World Equity index, was up 0.5, near its highest since midDecember.

Europe39;s STOXX 600 was 0.5 higher, also near a onemonth high and London39;s FTSE 100 was up 0.2, extending the previous week39;s gains to hit its highest since 2019.

The market is reading that wage pressures are easing quite rapidly and seeing that as positive and potentially people whispering the words soft landing more loudly now, said Hani Redha, global multiasset portfolio manager at PineBridge.

A soft landing is the ideal Federal Reserve policy goal after raising interest rates, a situation in which inflation slows but there are not enough job losses to trigger a recession.

Redha said that there was overexcitement in the market reaction to the U.S. jobs data, and that more wage data would be needed….