LONDON - Britain's leading share index closed 1.6 percent higher, with heavyweight banks, miners and energy stocks reversing early losses, helped by a strong opening for the US market. The FTSE 100 closed at 5,165.7 points, up 83.5 or 1.64 percent.

@MARKET ROUNDUP:EUROFIRST

EUROPE - European shares rose sharply, with the main FTSEurofirst 300 index regaining the 1,000 mark, as a pick up in merger and acquisition activity buoyed investor sentiment.

US Xerox Corp. announced its plan to buy Affiliated Computer Services Inc. in a $6.4 billion cash-and-stock deal.

Abbott Laboratories also said it would buy the drugs unit of Belgium's Solvay in a $6.6 billion deal, while Johnson & Johnson bought an 18 percent stake in Dutch biotech firm Crucell for $444 million.

@MARKET ROUNDUP:EUROmarkets

FRANKFURT - The DAX index ended at 5,736.31 points, up 154.9 or 2.78 percent.

PARIS - The CAC-40 index closed at 3,825 points, up 85.86 or 2.3 percent.

ZURICH - The Swiss market index closed at 6,289.27 points, up 52.36 or 0.84 percent.

MILAN - The FT IT All Share index closed at 23,939.97 points, up 353.41 or 1.5 percent.

@MARKET ROUNDUP:nikkei

TOKYO - Japan's Nikkei average slid 2.5 percent to its lowest close in two months, as a surge in the yen hit shares of exporters such as Tokyo Electron. The benchmark Nikkei fell 256.46 points to 10,009.52, its lowest close since late July.

@MARKET ROUNDUP:hang seng

HONG KONG - Stocks fell to a three-week closing low, dragged down by telecoms after a late tumble by Chinese shares prompted skittish investors to lock in profit, and as weak US housing data raised doubts about the strength of the global recovery. The index fell to as low as 20,534.82, before trimming losses to 20,588.41 at the close of trade, down 2.07 percent or 435.99 points from the previous close.

@MARKET ROUNDUP:asx

SYDNEY - Stocks fell 0.76 percent as investors worried that company valuations had outpaced a tentative economic recovery. The S&P/ASX 200 index finished down 35.9 points at 4,677.4, after touching a low of 4,645.

@MARKET ROUNDUP:south africa

JOHANNESBURG - South Africa assets received a fillip from higher US stocks, which together with steady bullion price, helped the rand and stocks erase earlier losses. The All-share index closed at 24,993.96 points, up 49.13 or 0.2 percent.

The All Gold index closed at 2,391.03 points, up 10.38 or 0.44 percent, while the Industrial index closed at 19,801.5 points, down 29.82 or 0.15 percent.