LONDON ( The Deal) -- European markets opened higher on Friday as positive sentiment returned following a week of declines that had pushed major indexes to their lowest levels since February.

London's FTSE 100 traded up 0.67% at 6117.40, led by a rebound in mining and oil stocks that had fallen sharply since the start of the week. Anglo American (AAUKF)  opened 2.9% higher, Rio Tinto (RIO) - Get Report was up 2.84% and Glencore (GLNCY)  rose 2.76%, making them the early leaders in the FTSE 100. BP was up 2.3%, as oil prices rose.

In Frankfurt, the DAX climbed 0.7% to 9597.45, piloted by electricity utility RWE, which gained 3%.

Paris's CAC 40 was up 0.62% to 4272.35, with Nokia's (NOK) - Get Report 2.56% gain leading the way after it fell to a year low on Thursday. French banks were also performing well in early trading led by Société Générale. France's No. 2 bank climbed just under 2% after it confirmed the European Commission will halve a €446 million fine for Libor rigging after the bank discovered a mistake in the data it sent to the regulator.

Italy's FTSEMIB was the Europe's best performing index, up just under 3% to 17306.48. Italy's troubled banking sector led the gains after the government flagged its willingness to establish a fund to help lenders offload bad loans and boost capital reserves. Banco Popolare and Banco Popolare dell'Emilia Romagna led the early gains, up 10.62% and 12.77% respectively.

Telecom Italia (TI) climbed 3% after France's Vivendi (VIVHY) , which owns 24.9% of Italy's largest telecoms group, said the Italian group didn't need to raise cash to fund new investments.

S&P 500 futures climbed 0.64%.

Japan provided a rare bright spot in Asian markets after a late rally pushed the Nikkei 225 up 0.46% to close at 15821.52. Japan's Finance Minister Taro Aso can take most of the credit for that gain after he promised the government will take measures to reverse the yen's recent gains against the dollar.

Yahoo Japan Corp. ended the session 6.37% higher on reports that Verizon (VZ) - Get Report  had offered to buy Yahoo!'s (YHOO) stake in the Japanese business as part of a wider bid for Sunnyvale, Calif.-based Yahoo!.

Chinese investors proved wary as they prepared for next week's release of new lending, inflation and money supply data. China's Shanghai Composite closed down 0.78% at 2984.96, while the tech-heavy Shenzen Composite edged 0.83% lower to 1914.32.

In Sydney, the S&P ASX 200 fell 0.53% to 4937.60 after the Reserve Bank left interest rates on hold at 2% but hinted a cut could be on the way after it warned that a strong Australian dollar "could complicate" Australia's economic outlook.