The FTSE 100 is up 54.7 points, or 0.93%, to 5,928.3 in early trading as miners lead the gains.
Anglo American has posted the biggest gains so far with a rise of 3.73% to £22.22, closely followed by Rio Tinto which has increased by 3.2% to £25.12, while BHP Billiton is up 3.03% to 918p.
However, Compass Group is acting as the biggest drag on the index with a drop of 2.26% to 270p, closely followed by insurer Standard Life which has dropped 2.03% to 265.75p.
Resolution is also down 0.89% to 609.5p, while Northern Rock is down 0.77% to £11.59, and retailer Next is down 0.52% to £19.12, although the losses are being offset by mining group Xstrata which is up 2.65% to £21.66, while Drax Group has added 2.76% to 837p.
In Japan, the Nikkei 225 Stock Average ended the day up 390.42, or 2.5%, to 15,947.87 at the 3pm close, as exporter stocks climbed the most in more then two months after US consumer confidence rose more than expected.
Canon, which generated almost 75% of its sales from overseas last year, jumped 190 yen, or 3.2%, to 6,090, its highest close ever, while Sony, the world's second-biggest consumer electronics maker, added 140 yen, or 3%, to 4,860, and Honda Motor, Japan's third-largest carmaker, advanced 70 yen, or 1.8%, to 3,870.
Elsewhere, Sumitomo Mitsui, Japan's third-largest bank, rose 50,000 yen, or 4.4%, to 1.2 million, while Mitsubishi UFJ Financial Group, the biggest, gained 60,000 yen, or 4.2%, to 1.49 million, and Mizuho Financial Group, Japan's No. 2 bank, added 31,000, or 3.6%, to 896,000.
Sharp, Nippon Suisan Kaisha and Sumitomo Electric Industries were the only three stocks in the Nikkei 225 which fell, with Sharp down 25 yen, or 1.2%, to 2,020.
And in the US yesterday, the Dow Jones Industrial Average rose 93.58 points, or 0.81%, to 11,669.39, as an unexpectedly big jump in consumer confidence eased investor concerns about the effect of slowing economic growth on corporate profits.
Following the report on consumer confidence, shares in Caterpillar, the heavy equipment maker, jumped 2.4% to $65.90 and Wal-Mart rose 0.9% to $49.25, while Boeing gained 1.7% to $79.00.
Some energy stocks also rose as investors said declines in such shares, following a 20% drop in oil prices in the past two months, were excessive. Exxon Mobil was up 2.1% to $66.43, while Chevron gained 2.3% to $63.59.IFAonline
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