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LONDON (AFP) –
Miners dragged European stocks higher on Monday as metals prices surged on fears of disruption to copper supplies in the wake of a devastating earthquake in Chile.
Markets also rose on hopes that the European Union was close to announcing more concrete measures to deal with the sovereign debt problem in Greece, although a lack of specific details tempered investor enthusiasm.
In late morning trade, London's benchmark FTSE 100 index won 0.19 percent to reach 5,364.70 points, Frankfurt's DAX 30 rose 1.20 percent to 5,665.32 points and in Paris the CAC 40 added 0.80 percent to 3,738.35.
The DJ Euro Stoxx 50 index of top eurozone shares increased by 0.74 percent in value to reach 2,748.49 points.
Metal supply worries mounted following Saturday's powerful 8.8 magnitude quake in Chile, the world's largest copper producing country, which left at least 708 people dead.
Prices of copper surged on fears of damaged mining infrastructure, dealers said.
Chile's President Michelle Bachelet said she expected the toll of 708 to rise, while her government admitted it had erred by failing to warn Chileans about the tsunami risk following Saturday's quake.
"European indices gained ... on Monday after strength in commodities on production suspensions from the massive earthquake in Chile helped to push the heavyweight miners higher," said City Index analyst Joshua Raymond.
In Asia, Tokyo gained 0.45 percent and Hong Kong won 2.17 percent in value as copper prices spiked higher.
"The main catalyst today has been the mining sector," said analyst David Jones at IG Index traders.
"In Asian trading, copper prices jumped up by around six percent following the earthquake in Chile and... there is still enough concern about supply problems to lift the likes of Kazakhmys and Fresnillo."
In London deals on Monday, mining companies Fresnillo and Kazakhmys saw their share prices surge by 2.73 percent and 3.43 percent, to stand at 771 pence and 1,387 pence respectively.
On the downside, shares in Prudential plunged by 13.11 percent to 532.5 pence after the insurer agreeed to buy AIA, the Asian arm of US peer AIG, for 35.5 billion dollars (26 billion euros).
Investors fretted over news that the cash-and-shares deal aimed at creating southeast Asia's biggest insurer would be part-funded by a massive sale of new Prudential stock.
HSBC bank shares meanwhile sank 5.04 percent to 683.3 pence as the group posted a modest two-percent rise in 2009 net profits.
The group added that it was "well positioned" for economic recovery, adding that emerging markets would out-perform those of the developed world, growing three times faster this year.
Meanwhile investors continued to track the latest news flow on the Greek debt crisis.
Greece must do more to reduce its deficit and end a fiscal crisis, Europe's top budget enforcer Olli Rehn said on Monday after talks with Greek Finance Minister George Papaconstantinou in Athens.
"Additional consolidation measures are necessary to make sure the forecast target of deficit reduction for this year is met," Rehn, the EU's Economic and Monetary Affairs Commissioner, told reporters.
Greece has the highest public deficit in the eurozone at an estimated 12.7 percent of gross domestic product (GDP). The government has vowed to cut the deficit by four percentage points this year.
