The FTSE-100 index was up 63.48 points to 6165.57, after positive trading in Asia and Wall Street on the back of receding fears of a credit crunch in the world's second biggest economy.
Germany's Dax and France's Cac 40 index were also sharply higher with gains of 1.7% and 2% respectively.
As well as reassurances from China's central bank that liquidity is being monitored and remains ample, a surprise fall in first-quarter growth in the US helped underpin markets.
While US output was revised sharply lower to 1.8% from an earlier estimate of 2.4%, weaker growth had the converse effect of boosting markets, as it could delay the US Federal Reserve's plans to wind down its quantitative easing scheme.
Currency traders shrugged off the downbeat economic data to drive the dollar higher against sterling, with a pound worth 1.53 dollars. Sterling was flat against the euro at 1.18.
Meanwhile, the decline of more than 3% to around £1234 for an ounce of gold was reflected in the FTSE-100's commodities firms, with Fresnillo down 32p to 866.5p, Randgold Resources down 125p to 3972p and Anglo American off 43p to 1256p.
Insurance stocks were positive, with Prudential up 2.7% or 28p to 1059p and Aviva 6.6p higher at 336.2p. Legal & General rose 3.5p to 169.1p after it bolstered its retirement arm with the acquisition of closed annuity fund Lucida in a deal worth £150 million.
In other corporate news yesterday, Direct Line Group was 3.8% higher in the FTSE-250 index after announcing it will more than double it annual cost savings target to over £200m, including through the potential loss of around 2000 jobs.
The UK's biggest motor insurer – said it would axe sites in Liverpool, Croydon and central London by the end of the year. The shares rose 8.3p to 227.4p.
The recent revival in the property market continued to prop up shares in the leading housebuilders, some of whom have trading updates next week. Persimmon was 25p higher at 1161p in the Footsie, while Taylor Wimpey added 3.95p to 94.95p and Barratt Developments improved 13.6p to 307.4p
And transport group Stagecoach was 10.5p higher at 310p after announcing better-than-expected full-year underlying profits of £218.9m, compared with £202.5m a year earlier.
The company also increased its dividend by 10.3%.
The biggest risers were Aberdeen Asset Management up 17.2p to 378.3p, International Airlines Group up 8.3p to 264.2p, Croda International 74p higher to 2429p, and ITV up 3.9p to 137.5p.
The biggest fallers were Fresnillo down 32p to 866.5p, Anglo American off 43p to 1256p, Randgold Resources down 125p to 3972p and Antofagasta 17.5p lower to 801.5p.
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