Sharecast - At 0930 BST, the FTSE 100 was up 0.6% at 7,511.46.
US markets will be closed for Labor Day.
Russ Mould, investment director at AJ Bell, said: "Investors are growing warm to the idea that the Federal Reserve might not rush to raise interest rates again at its next meeting. An increase in unemployment for August and lower than expected wage growth suggest the Fed may sit on its hands and make no change to rates/
"Judging by the messages from US corporates regarding a slowdown in trading, it does feel like we could be at a turning point for monetary policy. Nonetheless, it is impossible to say for certain what the Fed will do, given these are only data points from a brief period of time.
"Sentiment across Asian markets improved after the weekend vote by creditors in favour of restructuring a bond repayment by troubled Chinese property developer Country Garden. Chinese authorities also lowered downpayment requirements for first and second-time home buyers, thereby providing yet another stimulus initiative to drive greater economic growth."
In equity markets, miners rallied, with Glencore (LON:GLEN), Rio Tinto (LON:RIO) and Anglo American (LON:AAL) all up, while Asia-focused insurer Prudential (LON:PRU) also advanced.
Engineering company Wood Group rose after saying it had struck a $330m services agreement with North Sea oil and gas producer Harbour Energy (LON:HBR).
Online trading platform CMC Markets edged lower as it announced the appointment of Albert Soleiman as chief financial officer, replacing Euan Marshall, who has retired from the board.
Outside the FTSE 350, Ergomed surged after the biopharmaceutical services group agreed to be bought by private equity firm Permira for around £703.1m.
Market Movers
FTSE 100 (UKX) 7,511.46 0.63%
FTSE 250 (MCX) 18,614.45 0.42%
techMARK (TASX) 4,300.78 0.18%
FTSE 100 - Risers
Glencore (GLEN) 435.25p 1.90%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 162.30p 1.85%
Burberry Group (LON:BRBY) 2,220.00p 1.74%
Rolls-Royce Holdings (LON:RR.) 222.80p 1.69%
Rio Tinto (RIO) 5,050.00p 1.56%
Anglo American (AAL) 2,167.50p 1.47%
Melrose Industries (LON:MRON) (MRO) 523.60p 1.43%
Barclays (LON:BARC) 151.16p 1.41%
Persimmon (LON:PSN) 1,073.50p 1.37%
Prudential (PRU) 982.40p 1.30%
FTSE 100 - Fallers
Fresnillo (LON:FRES) 563.00p -1.09%
B&M European Value Retail S.A. (DI) (BME) 569.80p -0.70%
Johnson Matthey (LON:JMAT) 1,780.50p -0.56%
BT Group (LON:BT.A) 114.85p -0.48%
Vodafone Group (LON:VOD) 73.30p -0.41%
Admiral Group (LON:ADML) (ADM) 2,421.00p -0.37%
Haleon (LON:HLN) 318.80p -0.34%
Sainsbury (J) (SBRY) 269.50p -0.30%
Endeavour Mining (EDV (LON:EDV)) 1,616.00p -0.25%
Pershing Square (NYSE:SQ) Holdings Ltd NPV (PSH) 3,006.00p -0.13%
FTSE 250 - Risers
Watches of Switzerland Group (WOSG) 607.50p 3.05%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 466.80p 2.96%
Hammerson (HMSO) 24.58p 2.67%
Future (FUTR (LON:FUTR)) 802.50p 2.49%
Ferrexpo (LON:FXPO) 79.70p 2.38%
easyJet (LON:EZJ) 435.00p 2.35%
Vanquis Banking Group 20 (VANQ) 108.80p 2.26%
Capita (CPI) 17.91p 2.23%
BlackRock (NYSE:BLK) World Mining Trust (BRWM) 605.00p 2.20%
Synthomer (LON:SYNTS) (SYNT) 63.60p 2.17%
FTSE 250 - Fallers
Ashmore Group (ASHM) 190.30p -1.96%
Chemring Group (CHG (LON:CHG)) 284.00p -1.73%
Edinburgh Worldwide Inv Trust (EWI) 150.00p -1.57%
Herald Investment Trust (HRI) 1,744.00p -1.47%
NextEnergy Solar Fund Limited Red (LON:NESF) 87.15p -1.41%
Direct Line Insurance Group (DLG) 156.90p -1.20%
Senior (SNR) 175.60p -1.01%
CMC Markets (CMCX) 107.00p -0.74%
SDCL Energy Efficiency Income Trust (SEIT) 72.90p -0.68%
Diversified Energy Company (DEC) 87.50p -0.68%