European stock markets rose to see the new trading year in, after earlier gains in Tokyo, as dealers returned to their desks in upbeat mood for the first trading day of 2010.

In morning trading, London's FTSE 100 index of leading shares added 0.67 percent to 5,449.33 points, the Paris CAC 40 index increased 1.08 percent to 3,979.02 points and Frankfurt's DAX 30 index won 0.90 percent to 6,011.02.

The DJ Euro Stoxx 50 index of top eurozone shares rose 0.93 percent to 2,993.71.

"The FTSE 100 started the year on the front foot, led by the heavyweight banks and energy firms," said analyst Nicola Poskitt at spread-betting firm City Index.

"We have seen investors coming in this morning in positive moods and firmly looking for equity markets to continue their moves higher after last year saw the FTSE rally 22 percent.

"The sentiment is still on the recovery theme and considering the fact that historically the first trading day of the year usually ends with gains, this morning's rally is no surprise."

All three main European markets, which had closed early last week for the New Year holiday weekend, each gained more than a fifth last year amid growing investor confidence over economic recovery.

London and Paris each gained more than 22 percent in 2009, while Frankfurt won almost 24 percent last year.

In earlier Asian trading on Monday, Tokyo struck a 15-month high as investors cheered a weaker yen and the Japanese government's plan to expand a credit line to troubled Japan Airlines.

"Today sees the markets on the up," added Capital Spreads analyst Simon Denham.

"This is not exactly surprising as the first day of virtually every year seems to be positive as funds look to place at least a bit of their cash pot."

The energy sector was lifted as world oil prices soared beyond 80 dollars per barrel.

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