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London - Europe's main stock markets rose on Monday, building on sharp gains won before the weekend pause thanks to a strong US jobs report.
Tokyo earlier Monday led a surge in Asian stock markets, soaring 4.0% by the close, as the jobs update provided some much-needed optimism after the recent hammering to stocks caused by Britain's vote to leave the European Union.
A landslide election victory at the weekend for Japan's Prime Minister Shinzo Abe's ruling party providing extra support, analysts said.
"Investors are basically welcoming the victory of Abe's ruling coalition," Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking, told AFP.
"But the question is whether or not stock prices can keep up this pace."
The yen slumped however, halting a four-day rally, as the win fuelled speculation for a fresh round of stimulus, reportedly worth as much as ¥20trn, to kickstart the stumbling Japanese economy.
"The goodwill gained from last Friday's US non-farms jobs report has carried through... lifting the European indices back to week-highs," said Spreadex analyst Connor Campbell.
"Crossing the 6 600 (points) mark once again, and tickling 11-month highs in the process, the FTSE is continuing to prove its post-Brexit resilience, boosted by a wave of multinationals ostensibly excited by the cheaper pound."
Around 12:00, London's benchmark FTSE 100 index was up 0.6% compared with Friday's close. In the eurozone, Frankfurt's DAX 30 jumped 1.2% and the Paris CAC 40 advanced 0.8%.
All eyes were on the Bank of England this week, which is forecast to possibly cut its key interest rate and announce more stimulus on Thursday in the wake of Brexit, a decision which would likely further weigh on the pound.
"There are broad gains for the FTSE this morning amid speculation the Bank of England is preparing to unleash more stimulus this week," said Neil Wilson, markets analyst at traders ETX Capital.
"The prospect of looser monetary policy will help equities but it's another nail in sterling's coffin."
The pound has slumped to 31-year lows against the dollar and tumbled versus other currencies since Britain last month voted to exit the European Union.
Friday's US jobs data meanwhile, showing the world's biggest economy reporting a surge in new posts last month, lit a fire under Wall Street on Friday.
The Labour Department said 287 000 jobs were created in June, 112 000 more than expected and a sharp improvement on May's 11 000 that had raised fears of a potential recession.
