LONDON’S FTSE 100 Index joined world markets in rallying yesterday as developments in China and improved economic data overshadowed fears over Egypt.

The FTSE closed 1.6 per cent higher, up 94.9 points at 5957.8, while America’s Dow Jones Industrial Average soared more than 100 points in early trade.

The mood in Europe was similarly positive, with Germany’s Dax up 1.5 per cent and the Cac-40 in France 1.7 per cent higher.

Positive manufacturing news in both the US and UK helped investors shrug off the impact of political turmoil in Egypt.

A fightback from market heavyweight BP also helped in London as the oil firm recovered early losses seen in the wake of fullyear results.

In the mining sector, Fresnillo surged 88p to 1384p and Kazakhmys lifted 72p to 1578p.

Technology firms were also doing well, led by Cambridge-based Autonomy, after the software specialist’s fourth quarter results met City expectations.

Shares jumped six per cent, or 94p to 1590p.

Chip designer Arm Holdings, which is based in the same city, also climbed 31.5p to 547.5p as its shares maintained the run of form that helped the blue-chip stock to rise by about 170 per cent last year.

Buoyed by strong consumer demand for smartphones and tablet computers, Arm’s underlying earnings for the fourth quarter were 14 per cent higher than the market’s consensus.

BP shares were 6.2p higher at 491p as the oil firm restored dividend payments but posted a smaller- than-expected fourth quarter profit.

The return of shareholder payouts, starting with seven cents a share for the most recent quarter, came despite the company’s first annual loss since 1992 as it counted the $40.9bn cost of the Gulf of Mexico oil spill.