The FTSE 100 Index has gained 48.8 points, or 0.8%, to 6092.9 points this morning, paced by HBOS and British Energy Group.
HBOS has risen 2.5% to 962p after Citigroup raised its price estimate for the stock 4.3% to 1,200p.
British Energy has climbed 4.3% to 729.5p. The utility said it supplied 60.4 terawatt-hours of nuclear-generated electricity in the year ended 31 March, 1% more than the previous year.
Cadbury Schweppes has also climbed 2.2% to 571p after UBS AG raised its recommendation on the stock to "buy" from "neutral".
In Japan, the Nikkei 225 Stock Average gained 117.26 points, or 0.7%, to 17,350.12 points after US Federal Reserve minutes increased speculation a policy of raising interest rates may be coming to an end.
Sony rose 120 yen, or 2.1%, to 5,790 yen, Canon advanced 170 yen, or 2.1%, to 8,390 yen and Nissan Motor gained 5 yen, or 0.4%, to 1,394 yen.
Trading companies including Mitsubishi and Mitsui advanced on speculation higher oil prices will boost their earnings.
Mitsubishi rose 75 yen, or 2.7%, to 2,835 yen and Mitsui advanced 62 yen, or 3.6%, to 1,804 yen.
Tokyo Steel Manufacturing also jumped 130 yen, or 5.8%, to 2,390 yen after it increased prices of hot-rolled coils and other steel products for May.
In the US, the Dow Jones industrial average jumped 194.99 points, or 1.76%, to 11,268.77 points, also on minutes from the Federal Reserve meeting. Caterpillar led the Dow industrials' advance, climbing 3.2%, or $2.46, to $78.91.
US crude for May delivery rose 95 cents to settle at $71.35 a barrel in New York, taking Exxon Mobil up 2.4%, or $1.49, to $63.54 and ConocoPhillips up 3.4%, or $2.31, to $70.64.
Merrill Lynch posted higher-than-expected quarterly profit and its shares rose 1.2%, or 92 cents, to $79.38.IFAonline
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