LONDON (AP) - World stocks mostly rose yesterday as investors awaited the outcome of the US midterm elections and the Federal Reserve's decision on how much it will pump into the US economy to shore up the recovery.

In Europe, the FTSE 100 index of leading British shares was up 61.71 points, or 1.1 percent, at 5,756.33, while Germany's DAX rose 54.13 points, or 0.8 percent, to 6,658.99. The CAC-40 in France was 26.81 points, or 0.7 percent, higher at 3,867.92.

Japan's benchmark Nikkei 225 stock index rose 5.26 points, or 0.1 percent, to close at 9,159.98 and South Korea's Kospi gained 0.2 percent to 1,918.04.

Hong Kong's Hang Seng index added 0.1 percent to 23,671.42 and Chinese shares edged lower on profit-taking amid worries over possible shifts in monetary policy to counter excess liquidity - the benchmark Shanghai Composite Index closed 0.3 percent lower at 3,045.43.

India's main stock market in Mumbai fell after India's central bank raised its key interest rates by a quarter point to contain persistently high inflation amid strong economic growth.

Australia's S&P/ASX 200 eked out a 0.1 percent gain to 4,701.4 despite the Reserve Bank of Australia's surprise decision to raise its main interest rate by a quarter of a percent to a two-year high of 4.75 percent.

There was far more of a reaction in the currency markets - the Australian dollar jumped more than one US cent to trade above parity. By mid-afternoon London time, the Australian dollar was 1.3 percent firmer at $1.003.

Jane Foley, senior currency strategist at Rabobank International, said the Australian dollar is likely to remain firm over the coming months as the central bank is likely to continue raising borrowing costs.

Elsewhere, the euro was 0.9 percent higher at $1.4025 while the dollar was 0.4 percent firmer at 80.74 yen.

All eyes in the currency markets remain centered on the Fed and what it is planning to do - though the prospect of more dollars in the financial system has been a boon to stocks over the last few weeks, the dollar has tanked, particularly against the yen.

The dollar slumped to 80.21 yen on Monday, hovering near a post-World War II record low of 79.75 yen set in 1995.

Benchmark oil for December delivery was up 41 cents at $83.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.52 to settle at $82.95 on Monday.