Most European stocks push higher

Most European stock markets rose Monday as traders reacted positively to inflation data out of China and a rebound in oil prices, with Italian banking shares racing higher.

In Frankfurt, the DAX 30 climbed 0.6 percent and the Paris CAC 40 won 0.2 percent.

London's FTSE dipped 0.07 percent.

"A drop in the US dollar and a jump in the price of oil helped stocks build on morning gains on Monday after China reported a slowdown in producer price inflation," said analyst Jasper Lawler at CMC Markets.

Meanwhile investors in Italy were waiting for announcements from the treasury following reports the government would create two funds to help struggling banks.

Italian bank shares have been on a rollercoaster in recent weeks over the prospects for merging smaller banks and resolving their bad debts, and the latest reports sent them sharply higher.

Shares in Banca Populare rocketed 10.3 percent higher, while Banca Monte dei Paschi di Siena jumped 9.8 percent.

Even larger banks like Intesa Sanpaolo and Unicredit climbed higher, gaining 3.1 percent and 5.1 percent, as the reported plans would ease their burden in guaranteeing the operations in buying shares in smaller banks.

Milan's FTSE-Mib index climbed 1.3 percent.

Meanwhile, Wall Street stocks moved higher ahead of a heavy week for earnings reports, with the Dow adding 0.3 percent in midday trading.

Earnings season for the first quarter opens later Monday with a report from Alcoa and proceeds in earnest with JPMorgan on Wednesday, followed by Citigroup, Wells Fargo and Bank of America later in the week.

- China lifts Asian gloom -

Japan's Nikkei earlier led most Asian stock markets lower Monday as the yen resumed its march against the dollar and investors nervous about the stuttering global economy tentatively await the start of corporate earnings season.

However, Shanghai surged after data showed Chinese inflation held above two percent for a second-straight month in March, indicating some stability in the economic powerhouse.

The broad regional losses follow last week's sell-off as traders become increasingly fearful central banks are running out of ideas to ramp up global growth, with the International Monetary Fund expected to lower its forecasts this week.

In Tokyo the benchmark Nikkei ended 0.4 percent lower as exporters took another hit from the yen's strength. The unit, which is considered a safe bet in times of uncertainty, has climbed about five percent against the greenback this month alone.

But Shanghai closed up 1.6 percent -- and helping Hong Kong to a 0.4-percent rise -- as dealers welcomed the inflation figures.

The consumer price index came in at the same as February's 2.3 percent, the latest indication that the world's number-two economy may be stabilising, following a surprise jump in a gauge of factory activity at the start of the month.

The figures will also ease pressure on the government and central bank to add more economy-boosting stimulus after several rounds of easing measures including six interest rate cuts in the year to November.

"Given the upcoming stabilisation of real economic activity, ongoing rebound in property sales and prices, and the recent jump in headline CPI, we think policy easing momentum has likely peaked in the near term," UBS Group AG economists wrote in a report ahead of the release.

- Key figures around 1530 GMT -

London - FTSE 100 DOWN 0.07 percent at 6,200.12 points (close)

Frankfurt - DAX 30: UP 0.6 percent at 9,682.99 (close)

Paris - CAC 40: UP 0.2 percent at 4,312.63 (close)

EURO STOXX 50: UP 0.5 percent at 2,926.73

New York - Dow: UP 0.3 percent at 17,628.49

New York - S&P 500: UP 0.3 percent at 2,052.95

New York - Nasdaq: UP 0.5 percent at 4,872.87

Tokyo - Nikkei 225: DOWN 0.4 percent at 15,751.13 (close)

Shanghai - Composite: UP 1.6 percent at 3,033.96 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 20,440.81 (close)

Euro/dollar: UP at $1.1430 from $1.1398 on Friday

Dollar/yen: DOWN at 107.94 yen from 108.10 yen