World stocks were headed for their fourth week of gains in five on Friday after a surge in oil prices helped propel Wall Street's three main indexes to co-ordinated record highs for the first time since 1999.

MSCI's 46-country 'All World' index hovered at a one-year top as Europe's main bourses ran out of momentum having briefly hit a post-Brexit vote high in opening deals.

It followed Wall Street's landmark close and 1 percent plus gains in Tokyo and China overnight after some disappointing data there bolstered expectations that Beijing will be looking at its stimulus options again.

China's fixed asset investment from January to July increased by 8.1 per cent from a year earlier, the slowest rate in more than 16 years and below expectations for 8.8 per cent.

July retail sales rose 10.2 per cent, versus 10.6 per cent the previous month and a forecast 10.5 per cent. Industrial output slightly missed expectations as it came in at 6 per cent, while new bank lending was also slower than estimated.

"You have got the triple highs in the US equity markets and that basically shows you that risk appetite remains buoyant," said Societe Generale strategist Alvin Tan.

"The Chinese data didn't have much of a market impact at all, and that speaks of a global macro environment that is very pro risk."

Oil prices helped. They held onto the 4 per cent gains made on Thursday after a Saudi oil minister hinted at possible joint action between producers to stabilise prices and the International Energy Agency said it expected oversupply to start easing soon.

Global benchmark Brent crude LCOc1 climbed 0.3 per cent to $46.18, set to end the week 4.7 per cent higher and US crude at $43.89 a barrel was on track for a 5 per cent weekly rise.

"We are going to have a ministerial meeting of IEF (International Energy Forum) in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilise the market," Saudi Energy Minister Khalid al-Falih had said.

DATA DUMP

Back in Europe, there was reassuring news from the bloc's largest economy Germany, where economic growth slowed less than expected in the second quarter thanks to solid exports and state and consumer spending.

Global markets will also sift through a slew of US data, notably retail sales, due later in the session for latest cues about the world's largest economy and whether it is robust enough to withstand further monetary tightening.

US retail sales are expected to show a 0.4 per cent monthly increase in July, according to the median estimate of 64 economists polled by Reuters.

In currencies, the dollar rose after San Francisco Federal Reserve President John Williams told the Washington Post that the US central bank should raise rates this year because of improving labour market conditions and the likelihood that inflation is heading higher.

The greenback was steady at 102.025 yen after gaining 0.7 per cent on Thursday, and is heading for a 0.25 per cent weekly rise. The euro was also flat at $1.11420 after losing 0.3 per cent overnight.

The dollar index, which tracks the greenback against a basket of six major peers, rose 0.06 per cent to 95.913, but was on track for a loss of 0.3 per cent for the week.

The New Zealand dollar slipped 0.2 per cent after surging on Thursday to its highest in more than a year after its central bank cut interest rates by 25 basis points to 2.0 per cent.

The Australian dollar dipped 0.2 per cent, sapped by the data from China, the big buyer of its commodities, although it too was within touching distance of a year-high.

The rise in risk appetite weighed slightly on safe-haven gold. The precious metal inched up 0.1 per cent to $1,339.86 an ounce after losing 0.6 per cent overnight.

Euro zone bond yields also edged back from record lows as the rise in oil prices eased nagging deflation concerns and follow Williams' Federal Reserve rate hike comments.

"Since we had that drop to a record low in July, German bond yields have been pretty stable and oil prices will have a role in where we go from here," RBC's chief European macro strategist Peter Schaffrik said. - Reuters