AFP - European stock markets rallied on Monday, lifted by rising metals and oil prices, as investors eagerly awaited the latest batch of results from major US companies, traders said.

In late morning trade, London's FTSE 100 benchmark index of top companies rose 1.18 percent to 5,251.35 points.

Frankfurt's DAX 30 won 1.21 percent to reach 5,812.51 points and in Paris the CAC 40 climbed 1.19 percent to 3,873.65 points nearing the half-way stage.

The DJ Euro Stoxx 50 index of top eurozone shares rose 1.33 percent to 2,932.31 points.

In foreign exchange trade, the European single currency headed towards 1.50 dollars, while European officials may seek to talk down the currency's recent strength at an upcoming meeting, dealers said.

Frankfurt, London and Paris closed lower on Friday after the latest US corporate results disappointed high hopes and pushed Wall Street back underneath the key 10,000-point level, dealers said.

"European equities bounced back from Friday's losses to rally one percent higher on Monday, with rising commodity prices helping to lift the heavyweight miners and energy stocks," said analyst Joshua Raymond at spread-betting firm City Index.

Later Monday, Apple and Texas Instruments are scheduled to report quarterly earnings, while and Caterpillar and Coca-Cola report their results Tuesday.

"Earnings this week include tech bell weathers, Apple and Texas Instruments today, and 3M, Microsoft and 11 other Dow Jones industrial components this week," said Calyon analyst Stuart Bennett.

He added: "The overall tone to risk appetite remains positive despite the occasional setback," he added.

In Asian trade on Monday, Hong Kong shares jumped 1.23 percent to their highest level in more than 14 months, helped by commodities companies and mainland banks due to bargain-hunting.

The benchmark Hang Seng Index finished at 22,200.46 points -- the best finish since closing at 22,514 on August 4 last year.

However, Tokyo stocks made a cautious start to the week after investors on Wall Street were left unimpressed by the latest corporate earnings news. The benchmark Nikkei-225 index fell 0.21 percent to 10,236.51 points on Monday.

Many Tokyo investors were reluctant to buy ahead of Japan's interim corporate earnings season, which gets into full swing next week.

Dealers also took their cue from New York, where US stocks retreated Friday as disappointing earnings reports from Bank of America and General Electric dampened the mood following strong gains earlier in the week.

The Dow Jones Industrial Average fell 0.65 percent on Friday to close at 9,995.91 points, sliding below the key 10,000 level reached last Wednesday for the first time in over a year.