BN: European shares rise in early trade; Nikkei rises 1.6% on yen and Toyota
European shares edge higher, extending a winning run to three days, with miners up after Australia left interest rates unchanged but with BP leading oil companies lower after its results disappointed.
The FTSEurofirst 300 index of top European shares is up 0.5 percent at 1,022.86 points, having moved in and out of positive territory.
The index rose 1.6 percent in the previous two sessions and is up 58 percent from its lifetime low of March 9. It fell 3.2 percent in January, hit by worries over tougher banking regulations and Greece's deficit.
"Those worries are still there, but they are very much in the price," said Justin Urquhart Stewart, director at Seven Investment Management.
"What we are likely to see now is a nice healthy dose of euro fudge, where we are able to sort out Greece. It may not stabilise but it will be neutralised. There is a bit more confidence creeping back in."
Index heavyweight BP slumped 4 percent after reporting a lower than forecast 33 percent rise in fourth-quarter replacement cost profit and saying an operational turnaround could slow this year.
Other energy companies to fall included Total, ENI, and Royal Dutch Shell, down 0.8-1.2 percent.
However, miners were higher after Australian interest rates were left on hold and not raised. They were further helped by broker upgrades.
Anglo American, Eurasian Natural Resources Corp., Kazakhmys, Rio Tinto and Xstrata rose 1.5-2.3 percent.
Citgroup added Rio to 'buy' from 'hold' and raised earnings forecasts for several companies in the sector, based on the broker's upbeat view on metals prices.
Societe Generale upgraded Anglo American to 'buy'.
Banks were also on the rise, with gainers including Barclays, Credit Suisse and Deutsche Bank, up 1.2-2.1 percent.
Japan's Nikkei average rose 1.6 percent, with Toyota Motor Corp jumping after detailing plans of its fix for recalled vehicles, while exporters climbed on a weaker yen and strong US manufacturing data.
Resource-linked shares such as trading house Mitsubishi Corp gained ground after oil and gold settled up 2 percent on Monday as commodity markets started February on a steadier note after their worst fall in more than a year last month.
The benchmark Nikkei was up 166.07 points at 10,371.09, after briefly falling as far as 10,129.91 on Monday, around the level of the Nikkei's 75-day average, which market players said should serve as support for now.
