The FTSE 100 Index has gained 19.6 points, or 0.3%, to 5970.2 in morning trading so far, led by BP and Smith & Nephew. Shares of Hanson have also surged.
BP, the world's second-largest oil company, is up 1.2% to 659p. The company says 2005 profit from trading oil and natural gas rose 56% to $2.9bn as energy prices soared.
Smith & Nephew, Europe's largest seller of orthopedic devices, has climbed 4.2% to 550p while shares of Hanson, the world's largest supplier of sand and gravel for building, have surged 12% to 831p.
In Japan the Nikkei 225 Stock Average rose 80.68 points, or 0.5%, to 16,319.04 at its close a short while ago, paced by exporters such as Canon and Advantest, after a US retail sales report eased concern the Federal Reserve will keep raising interest rates in the world's largest economy.
Canon rose 80 yen, or 1.1%, to 7,310, while Advantest, the world's biggest maker of memory-chip testing equipment, rose 260 yen, or 1.9%, to 13,630.
Stocks also gained after newspaper reports said more than 60% of individual investors expect the Nikkei to rise following the Bank of Japan's decision to end its five-year deflation-fighting policy as consumer spending increases.
Meanwhile, a survey by Merrill Lynch showed Japan regained its position as the favorite region of global investors.
Sony, dropped after it was reported it will delay the release of its new PlayStation 3 video-game console until early November. The world's second-biggest consumer electronics manufacturer, fell 100 yen, or 1.8%, to 5,470. Sony will delay the release of its new Playstation 3 to ensure the copy protection technology for the Blu-ray disc works.
In the US stocks advanced Tuesday, with the Dow Jones Industrial Average ending with the highest close of nearly five years, thanks to better-than-expected income from giant companies.
At the closing bell, the benchmark had risen 75.32 points, or 0.68%, to 11,151.34, its highest close since it stood at 11,175.84 on June 5, 2001
World oil prices jumped Tuesday above $63 a barrel on the eve of US weekly energy stockpiles report amid threats to supplies from Nigeria and Iran. The surging of oil prices pushed energy companies higher such as ExxonMobil which rose 2%, or $1.17, to $60.81.
Goldman Sachs Group, the first giant investment bank to report results this quarter, said net income soared 64% in the fiscal first quarter to $2.48bn or $5.08 a share, far outstripping Wall Street's forecasts.Goldman Sachs rose $8.70, or 6.2%, to $149.42 and hit a new record high of $149.50.IFAonline
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