LONDON - European shares moved higher on Monday as Wall Street futures pointed to a recovery from ‍last week's sell-off, but investor caution capped ‍gains at the start of a week loaded with big central bank decisions and economic data.

Europe's benchmark STOXX index of 600 large companies gained 0.6%. S&P 500 ​e-mini futures rebounded 0.4%, after U.S. stocks had slumped on Friday over concerns about a bubble in Artificial Intelligence shares and lingering inflation in the world's biggest economy.

Asia shares were less buoyant thanks to renewed worries ⁠in China's property market. MSCI's broadest index of Asia-Pacific shares outside Japan shed 1.2%, led by a drop of as much as 2.7% in South Korean shares, one of the world's best-performing markets this year.

"The risk-off ⁠tone ‌across Asia looks more like a spillover from last Friday’s selloff in U.S. momentum and tech than a region-specific catalyst," said Marc Velan, head of investments at Lucerne Asset Management in Singapore.

"The unwind in the AI-capex trade weighed on global risk appetite, and in thin year-end liquidity those moves tend to travel quickly across regions."

The yield ⁠on the U.S. 10-year Treasury bond was last down 3 basis points at 4.1645% as investors awaited a string of economic data releases and a slew of decisions from central banks.

CHINA PROPERTY WOES

Against the Chinese yuan trading offshore, the U.S. dollar slipped 0.1% to 7.0486 yuan, hovering around its strongest level in more than a year, after factory output and retail sales data slowed further in November.

Official data showed on Monday that new home prices extended a decline in November, indicating that a recovery in demand remains elusive despite the government vowing to stabilise the sector.

China ⁠Vanke said it would convene a second bondholder meeting, after ​the state-backed property developer failed to secure bondholder approval to extend by one year a bond payment falling due Monday, increasing the risk of default and renewing concerns about the crisis-hit property sector.

"If Vanke ultimately defaults, we think the ‍ramifications on the China property sector can be significant," said Jeff Zhang, equity analyst at Morningstar. "Investors may be more concerned about the balance sheet and government's attitude towards bailout for even the 'safe names'."

CENTRAL BANK DECISIONS LOOM

Among the central banks making decisions this week, ​the Bank of Japan is expected to hike rates by 25 basis points to 0.75%, while the Bank of England may make an equal-sized cut to 3.75%.

The European Central Bank is expected to keep interest rates on hold, alongside Sweden's Riksbank and Norway's Norges Bank.

Investors will also have the chance to catch up on economic data that was delayed by the U.S. government shutdown, including the jobs report for November and the monthly consumer price index.

"It's worth taking this week’s data with a pinch of salt given problems collecting data as well as the direct economic impact of the government shutdown," said Ben Bennett, head of investment strategy Asia at L&G Asset Management in Hong Kong.

"We'll have to wait until 2026 to get a clearer reading on the U.S. economy."

In Japan, stocks gained some support after the BOJ's closely watched "tankan" survey showed on Monday that big manufacturers' business sentiment hit a four-year high, suggesting the economy was weathering the hit from higher U.S. tariffs.

The Topix was last up 0.2%, while the yen appreciated 0.6% to 154.955 against the U.S. dollar, nearing its strongest level in a week.

The kiwi dollar slid 0.4% to $0.5781 after comments from New Zealand's new central bank ⁠governor Anna Breman warning financial market conditions had tightened in recent weeks, leading investors to pare back rate hike expectations ‌for next year.

In commodities, Brent crude was 0.5% higher at $61.44 as supply fears from U.S.-Venezuela tensions and elsewhere lifted prices.

Imperial Oil said on Sunday it had issued a fire alert at its 120,000 barrel-per-day refinery facility in Ontario, Canada. Meanwhile, Russia said that an oil refinery in Afipsky was undamaged by a Ukrainian drone attack.

On the geopolitical front, U.S. envoy Steve Witkoff said "a lot of progress was made" ‌in peace talks to end ⁠the Ukraine war in Berlin on Sunday.

Gold extended its recent rally into a fifth day as it approaches a record high of $4,381.21. Spot bullion prices were last up 1.1% at $4,348.83.

Cryptocurrency markets snapped a three-day ⁠losing streak, with bitcoin last up 1.5% at $89,845 and ether rising 2% to $3,145.

(Reporting by Gregor Stuart Hunter; Editing by Shri Navaratnam, Sam Holmes and Louise Heavens)