DAX: 5,709.36 (+117.79)

Share prices rose by 2.11 per cent on the DAX 30 index owing to a rally of the yen. But investors remained cautious amid persistent uncertainty about the situation in Asia and the expiry of futures contracts on Friday.

Henkel was among the top performers amid rumours that it is a takeover target while Volkswagen also posted strong gains on the back of analyst recommendations.

CAC-40: 4,092.03 (+78.75)

French shares closed higher as investor fears of Asian turmoil were eased, at least temporarily, by foreign exchange intervention to support the yen. France Telecom shot up, ending 3.56 per cent higher despite a newspaper report that the Spanish government was likely to reject its bid for a mobile telephone licence.

Mibtel: 23,531 (+598)

The Milan Stock Exchange ended solidly higher yesterday, boosted by gains on Wall Street and other European markets and strength in a handful of heavily-weighed blue-chip stocks.