(MENAFN- AFP) European stock markets bounced back on Monday as positive eurozone data and expectations of low US interest rates for some time helped offset renewed concerns over a weak Japanese economy.
Around 1330 GMT, London's benchmark FTSE 100 index was up 0.5 percent compared with Friday's close.
In the eurozone, Frankfurt's DAX 30 rose 0.4 and the Paris CAC 40 added 0.3 percent.
The euro climbed to $1.1408.
"Equities are continuing to be lifted by the prospect that US interest rates will remain lower for longer," said Craig Erlam, senior market analyst at Oanda trading group.
"The Fed's new dovish stance has provided some reassurance to investors that were concerned that a faster pace of tightening could choke off any recovery in the US."
Eurozone stocks had slumped Friday on the first day of the second quarter as falling oil prices and renewed economic concerns in Japan hurt sentiment.
But they fought back on Monday as official data showed that unemployment across the single currency bloc fell to 10.3 percent in February, a four-and-a-half year low point.
"While dark clouds packed over the eurozone economy in the beginning of the year, the labour market has continued to provide tailwind," ING bank senior economist Bert Colijn said in a note to clients.
"The improvements in unemployment continue to fuel domestic demand in times when consumers have become more cautious. This will likely mitigate the negative effects of people more concerned about the state of the global economy."
In Asia meanwhile, Japanese stocks fell for a fifth straight session as the yen strengthened against the dollar.
Most other Asian markets turned positive after a better-than-expected US jobs report and data showing US manufacturing activity increased in March for the first time in six months.
The news was the latest to highlight renewed strength in the world's top economy, but analysts said the Federal Reserve would still not raise interest rates before June at least.
"Friday's US labour market report was something of a middling result for markets," Philip Borkin, a senior economist at ANZ Bank New Zealand.
"On the one hand it was not really strong enough to suggest inflation pressures are going to run away on the Fed, but on the other, it certainly still showed, together with a rebound in (manufacturing data), that the economy is still performing well overall."
On the European corporate front Monday, stocks in French telecoms companies fell sharply after market leader Orange said talks to purchase the rival network owned by industrial group Bouygues had failed.
Shares in Orange slumped 6.0 percent and Bouygues plunged 15.2 percent in afternoon Paris trading.
Wall Street stocks opened modestly lower Monday as Virgin America shares surged more than 40 percent on news it agreed to be acquired by Alaska Airlines in a $4 billion deal, including debt.
- Key figures around 1430 GMT -
London - FTSE 100: UP 0.5 percent at 6,147.03 points
Frankfurt - DAX 30: UP 0.4 percent at 9,834.83
Paris - CAC 40: UP 0.3 percent at 4,334.67
EURO STOXX 50: UP 0.4 percent at 2,965.07
New York - Dow: DOWN 0.1 percent at 17,771.20
New York - S&P 500: DOWN 0.1 percent at 2,070.02
New York - Nasdaq: UP DOWN 0.1 percent at 4,909.62
Tokyo - Nikkei 225: DOWN 0.3 percent at 16,123.27
Shanghai - Composite: Closed for public holiday
Hong Kong - Hang Seng: Closed for public holiday
Euro/dollar: UP at $1.1408 from $1.1393 on Friday
Dollar/yen: DOWN at 111.36 yen from 111.63 yen
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