European stocks rose on Wednesday as fresh signs of weakness in Asian economies were countered by hopes for more stimulus, while investors shook off concerns about rising inflation.

After a seventh straight month of gains, the pan-European STOXX 600 started September with a 0.7% rise, inching towards its mid-August record levels.

Asian shares recovered from earlier losses after data showed factory activity across the region lost momentum in August as a resurgence in coronavirus cases disrupted supply chains.

Investors are awaiting manufacturing activity and unemployment data for the euro zone later in the day.

Travel & leisure, insurance and technology stocks were the top sectoral gainers, all rising more than 1%.

French spirits maker Pernod Ricard rose 2.6% after it posted a stronger-than-expected rise in full-year operating profit, driven by a strong rebound in demand in China and the United States.

Supermarket group Carrefour slid 5.2% as luxury goods billionaire Bernard Arnault sold the 5.7% stake he owned in the company.