After the best quarter for US stocks since 2015, global equities have started off Q2 on the right foot, despite caution about the upcoming meeting between President Trump and China's Xi Jinping later this week, and Fed Minutes which are expected to be more hawkish than the FOMC statement.

European shares opened broadly higher, with Europe's Stoxx 600 rising 0.3% - its 5th day of gains - following a rally in Asian markets on upbeat final PMI data and after a report that Chinese President Xi Jinping will create a new economic zone. S&P futures were modestly in the green, pointing to a higher open for the S&P on the first day of the new quarter.

A second PMI survey on China's manufacturing on Saturday came in below market expectations but still showed a healthy expansion after a similar survey by the government on Friday pointed to strong growth in the sector. In Japan, the first major data release showed confidence among Japan's large manufacturers rose for a second consecutive quarter in the first three months of the year after the BOJ's "tankan" survey showed that business sentiment improved, albeit slightly less than expected (more below).

US futures are pointing to a modestly higher open with oil price holding above $50/barrel, thanks to a flat dollar after NY Fed President Dudley doused speculation of a more aggressive pace of policy tightening.

As the second quarter gets going, political developments threaten to cloud the improving global economic outlook, according to Bloomberg.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% , while Japan's Nikkei gained 0.8% after hitting a seven-week low on Friday. U.S. stock futures also indicated a positive open for Wall Street shares, while focus turned to a meeting on Thursday and Friday between the U.S. and Chinese presidents.

The Stoxx Europe 600 Index gained as much as 0.4 percent before paring the advance, while the euro looked set to end its longest run of losses versus the dollar since February. Energy companies led a gain in emerging-market shares as oil held above $50 a barrel.

German manufacturing growth reached an reached an almost six-year high in March, Markit's PMI for manufacturing showed on Monday, pushing the Dax to new record highs.