(Updates to open of U.S. markets, changes byline, dateline; previous LONDON)
* Stocks rebound after tough Asian session
* Offshore yuan hits record low, then recovers somewhat
* Treasuries, gold supported despite bounce in equities
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh
By April Joyner
NEW YORK, Aug 26 (Reuters) - A global gauge of equities rose on Monday and the dollar recovered from earlier losses as U.S. President Donald Trump said Chinese officials had contacted Washington about resuming trade negotiations, after signs of escalation in the U.S.-China trade dispute had roiled markets earlier in the day.
Trump’s comments followed Chinese Vice Premier Liu He’s remarks that China was willing to resolve the trade dispute through “calm” negotiations. European stocks bounced off their lows upon the easing of rhetoric between Washington and Beijing, and U.S. stocks opened higher.
“The sentiment today is conciliatory. The president is trying to walk back,” said Art Hogan, chief market strategist at National Securities in New York, referring to Trump.
“Whether or not he has a phone call with China doesn’t matter,” Hogan added. “The point is that he is attempting to keep the September meeting scheduled and get back to the negotiating bit.”
The dollar also reversed course to trade higher. The Chinese yuan, which had fallen to an 11-year low in the onshore market and hit a record low in the offshore market, also recovered somewhat.
Previously, Asian equity markets had plummeted and European stocks had appeared set to follow suit after China and the United States announced further tariffs on each other’s exports. On Friday, Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods.
On Wall Street, the Dow Jones Industrial Average rose 190.17 points, or 0.74%, to 25,819.07, the S&P 500 gained 20.99 points, or 0.74%, to 2,868.1 and the Nasdaq Composite added 70.02 points, or 0.9%, to 7,821.78.
The pan-European STOXX 600 ended little changed, while the MSCI All-Country World Index gained 0.12%.
Even as equities recovered from earlier declines, some safe-haven assets remained well supported. U.S. Treasury yields dipped, while spot gold added 0.2% to $1,529.81 an ounce.
Benchmark 10-year Treasury notes last rose 2/32 in price to yield 1.5216%, from 1.527% late on Friday.
In currency markets, however, the safe-haven Japanese yen fell 0.5% to 105.95 against the dollar after having rallied to a new seven-month high of 104.46 yen per dollar.
The dollar index rose 0.36%.
In the offshore market, the Chinese yuan was last down 0.5% at 7.1677 per dollar.
In oil markets, U.S. crude rose 0.24% to $54.30 per barrel and Brent was last at $59.22, down 0.2% on the day. (Reporting by April Joyner; Additional reporting by Kate Duguid in New York, Akanksha Rana in Bangalore, and Tommy Wilkes and Dhara Ranasinghe in London; Editing by Toby Chopra and Steve Orlofsky)