LONDON (The Deal) -- European stock indices rebounded on Friday following a mixed day in Asia as shares in carmakers regained some of the ground lost this week in the wake of the Volkswagen (VLKAF) emissions-testing scandal.

Shares rose even after Federal Reserve Chair Janet Yellen made clear that a 2015 rate rise remained firmly on the table in a speech on Thursday.

By mid-morning in London- and late morning on the continent, the FTSE 100 was up 2.5% at 6,110.32. In Frankfurt, the DAX was up 3.07% at 9717.50 and in Paris the CAC 40 was up 3.64% at 4,505.31. At the current level the DAX remains down about 2.4% on last Friday's close.

Fiat Chrysler Automobiles (FCAU) - Get Report rose more than 4% in Milan and Renault jumped more than 5% in Paris. In Frankfurt, Volkswagen rose, as did Bayerische Motoren Werke and Daimler.

Volkswagen is widely reported to be poised to name Porsche AG CEO Matthias Mueller as new CEO to replace Martin Winterkorn, who resigned on Wednesday.

In London, shares in medical-devices sterilization company Synergy Health jumped more than 40% in London after a U.S. court refused to grant a veto sought by the FTC over its £1.2 billion ($1.9 billion) takeover by Steris.

Power producer Drax Group (DRXGY)  rose more than 3% after it pulled out of a £1 billion carbon-capture project, citing changes in government support. The project would have attempted to capture and store emissions from fossil-fuel energy generation, neutralizing its environmental impact.

Quintain Estates & Development rose more than 7%, or 9.5 pence, to 141 pence after Lone Star Funds added another 10 pence per share to its offer, taking it to141 pence, which values the equity at £745 million.

Markets across Asia Pacific ended the day mixed.

In Japan, official figures showed the country has returned to deflation for the first time since April 2013. Core consumer prices were down 0.1% on the year.

Despite those figures, the Nikkei 225 closed up 1.76% at 17,880.51 in Tokyo and the Topix rose 1.88% at 1,453.81.

In China, the Shanghai Composite closed down 1.60% at 3,092.35 and in Hong Kong the Hang Seng closed up 0.65% at 21,232.43.