LONDON: European stock markets surged Tuesday following further volatile trading in China sparked by concerns over weak growth in the world's second biggest economy.
Frankfurt and Paris indices were both up by more than two percent in early afternoon trading, with London not far behind with a gain of 1.5 percent.
In foreign exchange, the euro dipped to $1.0851.
"European equities are in the green... thanks to a rise in the value of the Chinese yuan, the devaluation of which has been rattling markets in the New Year," said Jasper Lawler, market analyst at traders CMC Markets.
"A rebound off fresh 12-year lows in the price of oil has added to the upside in stock markets."
Shanghai stocks swung sharply again Tuesday.
After dropping more than five percent Monday -- taking its losses this year to almost 15 percent already -- Shanghai rallied in the first few minutes before quickly see-sawing in and out of positive territory through the day.
The swift movements have become common on the volatile index, which has been hammered by a string of weak economic data out of China.
Shanghai ended 0.2 percent higher on Tuesday but Hong Kong lost 0.9 percent.
Tokyo, which was closed Monday for a holiday, sank 2.7 percent as dealers there played catch-up with the rest of the region.
US markets also provided some positivity, with the Dow and S&P 500 moving higher Monday. However, investors remain on edge over China and over the fall in oil prices caused by a supply glut, anaemic demand and a weak global economy.
Oil prices rebounded Tuesday from 12-year lows below $31 per barrel.
Crude futures have been sliding in recent months on a chronic global oversupply of crude, prompting OPEC member Nigeria to call Tuesday for an emergency meeting to address the collapsing market.
New York's benchmark West Texas Intermediate for February delivery tanked Tuesday to $30.41, which was the lowest level since December 3, 2003.
And Europe's Brent North Sea crude for February dived to $30.43, a point last seen on April 6, 2004.
Prices were firmer approaching midday in London.
Nigerian petroleum resources minister Emmanuel Ibe Kachikwu declared that he expects an extraordinary meeting of the oil cartel in "early March".
London - FTSE 100: UP 1.5 percent at 5,957.2 points
Frankfurt - DAX 30: UP 2.5 percent at 10,074
Paris - CAC 40: UP 2.2 percent at 4,409.6
EURO STOXX 50: UP 2.0 percent at 3,089.7
Shanghai - Composite: UP 0.2 percent at 3,022.86 (close)
Tokyo - Nikkei 225: DOWN 2.7 percent at 17,218.96 (close)
New York - Dow: UP 0.3 percent at 16,398.57 (close)
London - FTSE 100: UP 0.1 percent at 5,877.5
Euro/dollar: DOWN at $1.0851 from $1.0858 Monday
Dollar/yen: UP at 117.83 yen from 117.77 yen
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