FTSE rallies on Greek expectations (AFP)

LONDON (AFP) – London shares rallied on Wednesday, mirroring gains in most of Asia, on prospects that Greek lawmakers will approve a radical budget action to avert default, while miners gained on rising metals prices.

The benchmark FTSE 100 index of top shares soared 1.15 percent to 5,833.22 points in late morning deals.

"With all eyes on Athens, traders have been riding the recent wave of confidence on the broad-based assumption that the austerity vote will be passed," said analyst Yusuf Heusen at financial spread-betting firm IG Index.

"Quite what this actually means -- when there are clear signs that the population won't buy into the measures required -- remains to be seen, making this rally look awfully fragile.

"With little else on the economic calendar, affairs in Greece really are dominating what is otherwise a relatively quiet market."

In recent days and weeks, investors have been on edge over a potential Greek default that could shatter confidence and send fresh shockwaves across global financial markets.

The Greek parliament is later expected to vote in favour of austerity measures that are demanded by international creditors in exchange for the EU/IMF money that the troubled eurozone member urgently needs to survive a debt crisis.

In London Antofagasta soared 4.14 percent to 1,357 pence, Kazakhyms rallied 3.08 percent to 1,340 pence and Vedanta won 2.48 percent to 2,021 pence, while Arcelor Mittal jumped 3.43 percent to 33.48 euros in Paris.

Engine-maker Rolls-Royce meanwhile added 1.55 percent to 622.5 pence after announcing a $1-billion order from Singapore Airlines.

Wall Street had raced higher on Tuesday, with all three major indices leaping more than one percent on optimism over Greece, while Asian stocks mostly rose on Wednesday.

Tokyo shares also jumped 1.54 percent after figures showed post-quake industrial output had surged to its second highest level on record while exporters were boosted by a weaker yen.