NEW YORK ( TheStreet) -- European shares were slightly higher and Asian stocks ended mixed Tuesday on mergers and acquisitions news.

Stocks in London rose 0.4%, while Frankfurt and Paris shares both were rising 0.3%.

Prudential PLC's ( PUK) agreement Monday to buy AIG's ( AIG) Asian operations for $35.5 billion spurred confidence among investors of further deal-making.

In Tokyo, the Nikkei 225 stock average gained 47.83 points, or 0.5%, to 10,219.89, after Japan's unemployment rate fell in January and household spending rose.

The Hang Seng in Hong Kong declined 0.7%, pulled down by bank HSBC ( HBC), which fell more than 7%.

Shares in Australia rose 0.3% after the nation's central bank boosted its key interest rate to 0.4%.

Premarket futures suggested stocks would open mixed Tuesday on Wall Street, after posting gains on Monday.

-- Reported by Joseph Woelfel in New York.

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