The top tier climbed 93.3 points to 6506.2, a 1.5% increase, as worries over US military intervention in Syria went on the back burner after denting markets heavily last week.
Blue-chip shares were fuelled by figures showing UK factory output increasing at a rate not seen for two decades, boosting hopes of a broad-based UK recovery.
Manufacturing output rose at the fastest pace since July 1994, while activity hit its best level since February 2011, a purchasing managers' survey showed.
Miners were also buoyed by healthy manufacturing data from China, which improved last month after prolonged weakness, to drive hopes of a growth pick-up in the world's second-biggest economy.
Traders put a gloomy performance last week behind them to begin September with a burst of bullish optimism.
Nervousness about an attack on Syria has been unsettling blue-chip shares but the rejection of action by Britain's Parliament and hesitation on Washington's Capitol Hill seems to have lifted the mood.
The Dax in Frankfurt and the Cac 40 in Paris also advanced strongly, climbing 1.7% and 1.8% respectively.
On the currency markets, continued recovery by the UK's factories helped the pound make strong gains, climbing to $1.55 and €1.18.
Rio Tinto was the second-strongest climber, closing up 122p at 3035p, while Anglo American lifted 57.5p to 1536p and Antofagasta rose by 30.5p to 885.5p.
Vodafone went from strength to strength on the back of its widely-anticipated US deal, building on an 8% rise over the past week after confirming it was in "advanced discussions" about selling its stake in Verizon Wireless to US partner Verizon. Shares were up 6.95p to 213.2p, a 3.4% gain.
Rival BT also got in on the act, following a ratings upgrade from Goldman Sachs. Its shares were up 4% or 12.9p to 338.2p.
Oil company stocks, boosted by the prospect of higher prices amid a fresh Middle East conflagration, fell back, with BP off 0.65p to 445.6p and Royal Dutch Shell shedding 8p to 2165p.
Outsourcing firms G4S and Serco, which have been under pressure over alleged mishandling of Government contracts, failed to take advantage of the rally. G4S edged up 0.9p to 260.9p and Serco was flat at 547.5p.
The biggest FTSE 100 risers were Aberdeen Asset Management 15.8p higher to 368p, Rio Tinto, Persimmon up 46p to 1145p and easyJet 51p higher at 1284p.
The biggest fallers were Fresnillo, down 28p at 1275p, Randgold Resources off 20p to 5065p, Royal Dutch Shell and Eurasian Natural Resources 0.7p lower to 227.7p.