The FTSE 100 index of leading shares has so far added 8.5 points, or 0.2%, to 5438.20 points this morning, building on the four-year high it achieved yesterday.
The blue chip stocks index is led in early trading by Cairn Energy and mining giant Anglo American.
Cairn Energy has advanced 85p, or 4.4%, to £19.99 after the oil exploration and production company says first-half profit rose 2% to £24m thanks to production gains in India and a sales boost through record oil prices.
Anglo American, the world's second-biggest mining company, has also climbed 20p or 1.3%, to 1,584p.after analysts this morning raised recommendation on the shares to “buy” from “hold”.
In Japan, the Nikkei 225 Stock Average climbed 189.89 points, or 1.5%, to 13,148.57 at its close a short while ago, the first time it has traded above the 13,000 mark in more than four years.
Companies which rely on domestic demand such as Mizuho Financial Group gained in the busiest trading day in the 56-year history of the Tokyo Stock Exchange.
Mizuho, Japan's largest lender, gained 23,000 yen, or 3.5%, to 672,000. Meanwhile, Fast Retailing Co, the operator of Japan's Uniqlo casual clothing store chain, advanced 100 yen, or 1.2%, to 8,570. JGC Corp, Japan's biggest plant engineering company, jumped 84 yen, or 4.7%, to 1,892.
Inpex, Japan's biggest oil explorer, gained 28,000 yen, or 3.4%, to 864,000. Sumitomo Metal Mining, Japan's biggest nickel producer and No.2 copper smelter, jumped 49 yen, or 5.3%, to 973.
In the US, stocks slid on Monday as a surge in oil prices and a possible rate increase by the Federal Reserve today raised concerns consumer spending will slow and hinder profit growth in the third quarter.
The Dow Jones Industrial Average declined 84.31 points, or 0.79%, to close at 10,557.63 paced by the likes of United Parcel Service and FedEx Corp, both of which were particularly hard hit, reflecting concerns about the impact of higher crude oil and gasoline prices on shipping costs and corporate profits. UPS shares fell 2.5% to $67.26 and FedEx dropped 2.8% to $77.93.
Shares of Honeywell International fell 2.5% to $38.30 on the New York Stock Exchange after the aerospace and industrial conglomerate agreed to sell Indalex Aluminum Solutions to an affiliate of private equity firm Sun Capital Partners.
But the surge in the price of crude oil helped push shares of Exxon Mobil up 1.5%, or $0.93, to $64.63.
Shares of eBay fell 0.4%, or $0.16, to $36.94 after analysts cut its rating on the to "peer perform" from "outperform."
But Nike climbed 6.4%, or $4.99, to $83.45 after the world's largest athletic shoe maker reported better-than-expected earnings.
During the regular session, Boeing Co. shares fell 1.1%, or $0.70, to $64.10 in trading after a source said on Friday the aerospace company could lose a contract for developing secret imaging satellites, a project that has seen soaring costs and schedule problems.
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