UK equities advanced on Thursday morning as stimulus hopes in China and easing concerns about the Japanese economy gave London's stock market a boost.
The FTSE 100 was trading 0.2% higher at 6,622 in early deals.
The Footsie slipped on Wednesday for the first time in six sessions after a lower outlook from the Bank of England and a huge fine across the banking sector weighed on sentiment. The UK benchmark index had settled at a six-week high on Tuesday of 6,627.40.
Markets across Asia performed well overnight despite a raft of disappointing economic data in China, where growth in industrial production, retail sales and fixed-asset investment eased in October. Mike van Dulken, head of research at Accendo Markets, said that the figures showed that the economic slowdown had continued into the fourth quarter, "which only goes to stoke the fires of market hope that more stimulus will be forthcoming, buoying risk appetite".
Investors were also reacting to speculation that the People's Bank of China is gauging smaller banks' demand for cash injections to support lending to businesses. Bloomberg cited an official who said that commercial banks in some provinces of China were applying for collateralised loans from the central bank, which could "run into tens of billions of yuan".
Reports that Japanese prime minister Shinzo Abe could call for a snap election next month to seek support for a delay in another sales-tax hike was also helping stocks. An increase in the sales tax from 5% to 8% in April has weighed heavily on growth in Japan and Abe is thought to be looking to postpone any future hike until the economy recovers.
SABMiller, ITV, 3i Group, LSE
Peroni and Grolsch maker SABMiller edged lower after missing analysts' forecasts by reporting flat operating profits in the first half as a stronger US dollar
had a $71m negative impact on its bottom line.
ITV underwhelmed despite revenue growth accelerating in the third quarter as the TV group continued to generate television advertising revenues ahead of the market.
Shares in investment firm 3i Group gained after the company said it delivered a "robust performance" in the first half, supported by a good flow of realisations and a strong balance sheet.
London Stock Exchange was also higher after it revealed first-half growth across all its business areas as it moved ahead of schedule to complete the acquisition of US index compiler and asset manager Russell Investments.
A number of stocks were trading lower after going ex-dividend, including M&S, Shell and BSkyB.
BSkyB was also in focus after revealing that it would be changing its name to Sky after completing the acquisition of Sky Italia and a majority stake in Sky Deutchland.
techMARK 2,849.91 +0.55%
FTSE 100 6,622.35 +0.17%
FTSE 250 15,672.99 +0.44%
FTSE 100 - Risers
3i Group (III) 410.30p +2.01%
Wolseley (WOS) 3,452.00p +1.74%
Aberdeen Asset Management (ADN) 433.10p +1.45%
Hargreaves Lansdown (HL.) 999.00p +1.42%
Mondi (MNDI) 1,070.00p +1.42%
Standard Chartered (STAN) 959.30p +1.40%
Sage Group (SGE) 386.20p +1.36%
Pearson (PSON) 1,198.00p +1.27%
IMI (IMI) 1,244.00p +1.14%
Morrison (Wm) Supermarkets (MRW) 174.90p +1.10%
FTSE 100 - Fallers
British Sky Broadcasting Group (BSY) 846.50p -1.86%
Royal Dutch Shell 'A' (RDSA) 2,192.00p -1.39%
Royal Dutch Shell 'B' (RDSB) 2,288.50p -1.36%
Tullow Oil (TLW) 488.60p -0.85%
ITV (ITV) 198.90p -0.85%
Barclays (BARC) 227.90p -0.70%
Capita (CPI) 1,041.00p -0.67%
easyJet (EZJ) 1,530.00p -0.65%
Sainsbury (J) (SBRY) 264.40p -0.64%
Glencore (GLEN) 328.20p -0.56%
FTSE 250 - Risers
Rank Group (RNK) 161.90p +6.58%
Kaz Minerals (KAZ) 265.70p +2.51%
Essentra (ESNT) 752.50p +2.38%
Ocado Group (OCDO) 314.20p +2.28%
Millennium & Copthorne Hotels (MLC) 567.50p +2.25%
St. Modwen Properties (SMP) 372.90p +2.22%
Croda International (CRDA) 2,456.00p +2.04%
Mitchells & Butlers (MAB) 382.40p +1.95%
Cable & Wireless Communications (CWC) 48.58p +1.91%
Supergroup (SGP) 810.00p +1.89%
FTSE 250 - Fallers
Rexam (REX) 451.50p -6.19%
Electrocomponents (ECM) 223.80p -4.64%
Soco International (SIA) 325.50p -2.60%
Domino Printing Sciences (DNO) 623.50p -1.97%
Afren (AFR) 75.30p -1.89%
Brit (BRIT) 250.30p -1.84%
Mitie Group (MTO) 292.10p -1.82%
Polymetal International (POLY) 529.50p -1.58%
Premier Farnell (PFL) 183.50p -1.34%
Grafton Group Units (GFTU) 661.00p -1.34%