U.K. stocks rose, led by BP Plc, Europe's second-largest oil company, and Royal Dutch Shell Plc, the region's largest.
BHP Billiton and Rio Tinto Group also advanced.
The benchmark FTSE 100 Index added 64.60, or 1 percent, to 6292.20 as of 11:42 a.m. The FTSE All-Share Index gained 0.9 percent to 3252.24. Ireland's ISEQ Index increased 0.7 percent to 9378.67.
BP added 7.5 pence, or 1.4 percent, to 552.5. Shell increased 17 pence, or 1 percent, to 1,746.
BHP, the world's largest mining company, increased 18.5 pence, or 2 percent, to 957.5. Rio Tinto, the world's third- largest, climbed 80 pence, or 3 percent, to 2,740.
Credit Suisse Group advised investors to boost holdings in commodity producers on speculation that demand from China, the world's fast-growing major economy, will increase.
Energy and mining stocks have underperformed the broader Stoxx 600 this year on concern a recent slide in oil and metal prices will slow earning growth in the industry.
``The underperformance we have seen in mining stocks has been a bit overdone,'' said James Buckley, a London-based director at Baring Asset Management, which oversees about $37 billion.
Nickel climbed to a record for a sixth consecutive session on continued concern that supply of the metal used in stainless steel won't meet demand this year. Tin advanced to an 18-year high for a second day.
Johnson Matthey Gains
Johnson Matthey Plc, maker of a third of all auto catalysts sold, gained 22 pence, or 1.5 percent, to 1,503 pence, after it said it expects higher second-half earnings growth from trading precious metals used in pollution-controlling devices.
Growth in profit before the sale of the catalyst division will be higher than the 9 percent gain in the first six months, London-based Johnson Matthey said today in a Regulatory News Service statement.
Northern Rock Plc advanced 28 pence, or 2.4 percent, to 1,192 pence. The U.K. lender with the best-performing bank stock in 2006 said second-half profit rose 51 percent on increased mortgage lending to existing customers, beating analysts' estimates.
Net income rose to 206.7 million pounds ($408.7 million), or 49.1 pence a share, from 137 million pounds, or 32.7 pence a share, in the year-earlier period. The bank will lift its 2006 dividend by 20 percent to 36.2 pence a share, it said in a statement today.
N Brown Climbs
N Brown Group Plc climbed 19.75 pence, or 7 percent, to 304 pence. The owner of U.K. mail-order catalogs Fashion World and Simply Be said it will return about 80 million pounds to investors as a shift in focus to online sales and home shopping fuels revenue.
The return of capital is worth about 27 pence a share and will take place through the issue of so-called B shares, the Manchester, England-based company said today in a Regulatory News Service statement.
Annual profit will ``at least'' meet its own estimates after home-shopping sales gained 11 percent in the 21 weeks to Jan. 20 excluding acquisitions, N Brown said.
Punch Taverns Plc rose 30 pence, or 2.6 percent, to 1,186. The largest U.K. pub operator by outlets said sales have met its expectations in the current fiscal year as Britons increasingly eat out and the company gets more money from rents.
Revenue at pubs leased to tenant managers and open at least a year rose about 1 percent in the 20 weeks after the fiscal year began in August, Burton-Upon-Trent, England-based Punch said today in a Regulatory News Service statement. Punch had 7,846 leased outlets as of August. Same-outlet sales at company-managed pubs gained 5 percent in the period.
The following stocks also rose or fell in U.K. markets. Stock symbols are in parentheses:
A.G. Barr Plc (BAG LN) climbed 21 pence, or 1.7 percent, to 1.236. The company, whose Irn-Bru soda outsells Coca-Cola in Scotland, said annual profit will meet analysts' estimates after the company improved its business with steps that include building a new sales and distribution center.
Bunzl Plc (BNZL LN) increased 4.5 pence, or 0.7 percent, to 654 pence. Credit Suisse Group raised its recommendation on the supplier of packaging and cleaning products to clients such as Wal-Mart Stores Inc. to ``overweight'' from ``neutral.''
Hanson Plc (HNS LN), the world's largest supplier of crushed rock used in construction, gained 16.5 pence, or 2.1 percent, to 793.5 on takeover speculation.
``Hanson has been a bid target numerous times in the past 6 months, everyone's touting Lafarge today,'' said Andrew French, an equity salesman at E*Trade Securities Ltd. in London. ``Asbestos claims may still be the main obstacle.''
A Lafarge spokeswoman was not immediately available to confirm or deny the speculation. Nick Swift, finance manager at Hanson, didn't immediately respond to a message.
HBOS Plc (HBOS LN) increased 26 pence, or 2.3 percent, to 1,138. The U.K. bank and retail entrepreneur Tom Hunter have tabled an indicative cash bid for U.K. homebuilder Wilson Bowden Plc, the London-based Times said, without saying where it got the information.
J.D. Wetherspoon Plc (JDW LN) added 18 pence, or 2.7 percent, to 681.5 pence. The U.K. owner of about 660 town-center pubs said sales increased in the 12 weeks ended Jan. 21 as it sold a wider range of food and drinks to attract customers to non-smoking pubs.
Separately, Evolution Securities raised its share-price estimate to 770 pence from 700 pence.
Marks & Spencer Group Plc (MKS LN), the largest U.K. clothing retailer, rose 9.5 pence, or 1.4 percent, to 691 pence. Deutsche Bank AG raised its share-price estimate to 815 pence from 800 pence, citing a ``shrinking pension deficit and growing property value.''
Renew Holdings Plc (RNWH LN) climbed 3 pence, or 3.4 percent, to 92 pence. The U.K. builder formerly known as Montpellier Group Plc said business in the fiscal first quarter was ``satisfactory,'' allowing it to maintain targets for half- year profitability.
Renishaw Plc (RSW LN) fell 80.5 pence, or 10 percent, to 719.5. The U.K. maker of calibrators to measure items from artificial hip joints to aircraft wings said fiscal first-half profit declined 12 percent as the pound's gain against the dollar crimped earnings.
Sage Group Plc (SGE LN) declined 1.25 pence, or 0.5 percent, to 271.5. ING Wholesale Banking lowered its recommendation on Britain's biggest maker of accounting software to ``sell'' from ``hold.''
``Increasing competition from large vendors and growing threats from private equity funds may put Sage's acquisitive strategy at greater risk,'' the bank wrote in a research note.
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