<P/>LONDON (The Deal) -- European and Asian stock indices rose on Friday, buoyed by a rally in the U.S. Thursday on signs that House Republicans will strike a short-term compromise with the Obama administration by temporarily lifting the government's borrowing limit.
In the U.K., the FTSE was up 0.52% at 6,463.83, while the Dax in Germany gained 0.36% to 8,717.32. The Cac-40 in France was up only marginally at 4,218.94.
In Britain, Royal Mail shares surged on their debut and were up about 36% on the IPO price at 447.25 pence by mid-morning. As expected, the government priced the vastly oversubscribed initial public offering at the top of the range at 330 pence, valuing the company at 3.3 billion pounds ($5.3 billion). The retail tranche of the offering was seven times oversubscribed and ordinary would-be investors that had ordered 10,000 pounds or more of shares were left empty handed; the government said those bigger spending applicants were more likely to sell the stock immediately. Those who ordered the minimum of 750 pounds of stock received that allocation.
Lloyds Banking Group rose 1.4% after it sold its remaining Australian assets to Westpac Banking for A$1.55 billion ($1.5 billion).In Stockholm, snuff and chewing tobacco maker Swedish Match fell 5.2% on disappointing third-quarter profit news from its U.S. unit and a warning about the full-year outlook at that division. In Mumbai, an upward revision in the annual sales forecast of software maker Infosys (INFY) buoyed that stock by almost 5% and led to a minor rally among other software makers and service providers in Europe.
In Japan, the Nikkei 225 rose 1.48% to close up at 14,404.74, its fourth consecutive daily gain. Exporters that derive significant proportions of their revenue from the Americas, including Panasonic and Toyota (TM) were among the gainers. Hang Seng in Hong Kong gained 1.16% to 23,218.32. New media company Tencent Holdings rose 2.2%.
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