BEIJING (AP) - Global stocks rose Friday on hopes that next month’s U.S.-Chinese talks might produce progress toward ending a costly tariff war over trade and technology.

Investors were encouraged by a Chinese government statement Thursday that its penalties on U.S. products are adequate. That suggested Beijing might be pausing in a tit-for-tat cycle of tariff hikes by both sides that has fueled fears the global economy might tip into recession.

The comment was “temporary relief for markets,” Jingyi Pan of IG said in a report. However, Pan cautioned it was in line with the view that Beijing “may delay a deal until the 2020 U.S. elections.”

Some analysts say Beijing might be waiting for President Donald Trump’s re-election campaign in hopes he will feel pressure to strike a deal - or is holding out to negotiate with his successor if he loses.

“This could still make for prolonged trade uncertainty,” Pan said.

In Europe, Germany’s DAX led the way, gaining 1.2% to 11,983 in midday trading. France’s CAC 40 added 1% to 5,500 while London’s FTSE rose 0.7% to 7,239.

On Wall Street, the futures for the Standard & Poor’s 500 and Dow Jones Industrial Average both rose 0.5%.

U.S. stocks finished Thursday with broad gains for the second day in a row after an uneven start to the week.

The S&P; 500 and Dow both rose 1.3% and the Nasdaq gained 1.5%. The S&P; 500 is on track for its first weekly gain in five weeks.

Anxiety about the U.S.-Chinese trade fight fueled market volatility this month.

Washington and Beijing are deadlocked in talks over U.S. complaints about China’s trade surplus and industry plans, which its trading partners say are based on stealing or pressuring companies to hand over technology.

Negotiators are to meet next month in Washington after the latest round of talks in July in Shanghai produced no sign of progress.

In Asia, Tokyo’s Nikkei 225 closed up 1.2% at 20,704.37 and Hong Kong’s Hang Seng added 21 points to 25,724.73. The Shanghai Composite Index was off less than 5 points at 2,886.24.

Seoul’s Kospi rose 1.8% to 1,967.79 and Sydney’s S&P-ASX; 200 advanced 0.4% to 6,604.20.

India’s Sensex gained 0.4% to 37,212.79. Markets in Taiwan, New Zealand and Southeast Asia rose.

ENERGY: Benchmark U.S. crude fell 79 cents to $55.92 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents on Thursday to close at $56.71. Brent crude, used to price international oils, shed 43 cents to $60.06 per barrel in London. It gained 56 cents the previous session to $60.49.

CURRENCY: The dollar declined to 106.34 yen from Thursday’s 106.52 yen. The euro retreated to $1.1039 from $1.1057.

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Matt Ott in Washington contributed to this report.

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