Wall Street stock futures see modest gains

U.S. stock futures were trading just above the flat line on Monday as Asian stock markets moved higher as investors focused on signs of strengthening overseas demand in an otherwise weak China manufacturing survey.

Dow Jones industrial average index futures rose 0.3%, Standard & Poor's 500 index futures added 0.3% and Nasdaq index futures also rose 0.3%.

Tokyo's Nikkei 225 rose 1.8% to 14,475. Hong Kong's Hang Seng gained 1.9% to 21,846. China's Shanghai Composite index advanced 1% to 2,066.

The preliminary version of HSBC's purchasing managers' index dropped to 48.1 in March from February's 48.5. Readings below 50 on the 100-point scale indicate a contraction in activity. Factory output shrank at the fastest clip in 18 months.

But the survey had a bright spot that for investors may have outweighed the signs of weakness in China's domestic economy. It showed that new orders from overseas export customers rose, spelling a recovery in overseas demand.

European shares traded lower.

On Friday, the S&P 500 slipped 5.49 points, or 0.3%, to 1,866.52. The Dow lost 28.28 points, or 0.2%, to 16,302.70. The Nasdaq composite dropped 42.50 points, or 1%, to 4,276.79.

FRIDAY: Stocks end lower as S&P 500 retreats from record

Benchmark crude oil for May delivery was down 39 cents to $99.07 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 56 cents to settle at $99.46 on Friday.

Contributing: Associated Press