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European shares track Asia gains on rebound optimism

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Oct 12 (Reuters) - European shares crept higher on Monday, tracking gains in Asia that were fuelled by optimism over a rebound in China’s economy, while investors remained cautious about a surge in domestic coronavirus cases.

The pan-European STOXX 600 was up 0.3% at 0702 GMT, with telecom and auto stocks leading gains.

The benchmark index ended Friday with its second consecutive week of gains on bets of more U.S. fiscal stimulus and growing expectations of a Democratic victory in the U.S. presidential election.

Still, gains on Monday were capped by a jump in new COVID-19 cases that have raised the spectre of more lockdowns. UK Prime Minister Boris Johnson is expected to announce new measures on Monday, while Italy is preparing fresh nationwide restrictions.

London’s FTSE 100 was down 0.2%, while the Italian bourse added 0.2%. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)