World stocks bounce back on Eurozone hopes

The FTSE 100 tracked gains in Asia overnight as the mining sector - which has taken a battering over world economic growth fears - bounced back.

World stocks rose for a third straight session with European shares up two per cent early on, as investors took comfort from reports that officials were working to add to measures to calm the Eurozone debt crisis.

After losing more than seven per cent last week, the MSCI all-country world stock index was up 1.5 per cent for a 2.5 per cent rebound so far this week.

The trigger has been rising expectations following weekend meetings of the International Monetary Fund that European policymakers will act to contain Greece's debt problems and resolve a debt crisis that threatens to do serious damage to the world economy.

However, the picture is blurred amid speculation that plans are underway to boost the size of a regional bailout fund to cut Greece's debts and recapitalise banks. Germany has denied that such a move has been initiated.

The fastest climbing stocks in London were all miners with Kazakhmys, up six per cent, leading the table. Meanwhile Vedanta, Fresnillo, Antofagasta and Eurasian were all up more than four per cent.

There were no significant losers on the FTSE 100, with Tullow Oil nudging down slightly in early trading.

FTSE All-share retailer Moss Bros was up 8.9 per cent after reporting a profit while Topps Tiles was up 14 per cent after it said it was on target to hit its profit target despite a slump in revenues.

Japan's Nikkei gained 2.8 per cent on closing after some bruising sessions.

Despite the upbeat tone on world markets investors' eyes were also focusing on debt elsewhere in the Eurozone.

Italy will kick off a busy week of debt sales as it tries to shore up its position.

In UK corporate news BAE Systems is poised to slash 3,000 jobs in a cost-cutting move. Its shares were up around 1.6 per cent on opening today.