LONDON - LONDON - European markets followed Asian stocks higher Friday as a big improvement in China's exports pointed to rising global demand that could lift other trade-reliant economies. Meanwhile, investors awaited U.S. retail sales data, expected to be the day's main market mover.

In morning European trading, Britain's FTSE 100 was 1 percent higher at 5,297.76, Germany's DAX added 1.1 percent to 5,770.02 and France's CAC 40 gained 0.8 percent to 3,830.29.

Benchmarks in Tokyo and Hong Kong led Asia's gains, snapping a string of losses that had reflected worries about shaky government finances in the West and a tepid economic recovery in the U.S.

Wall Street was set to open higher. Dow Jones industrial average futures rose 0.5 percent to 10,397 and Standard & Poor's 500 futures grew 0.6 percent to 1,103.80.

Providing reassurance for investors was news that China's November exports were down only 1.2 percent from a year earlier, the smallest decline this year, as nascent recoveries in the U.S. and other big markets helped revive demand. It was a dramatic improvement from October, when exports slid 13.8 percent, and even bigger declines in previous months.

Strong growth in Chinese industrial output and retail sales for the month also underlined that the recovery in the world's third-biggest economy is gathering momentum.

European markets were pushed higher by mining stocks that climbed on the back of rising metal prices and the Chinese data. Xstrata advanced 3.5 percent, Kazakhmys 3.3 percent and BHP Billiton and Rio Tinto 2.1 percent.

Banking stocks also bolstered European indexes, continuing to rise after snapping a three-day losing streak Thursday.

Meanwhile, investors were awaiting U.S. retail sales data, due at 1330 GMT (8:30 a.m. EDT).

"It's going to be the major market mover of the day," said James Hughes, market analyst at CMC Markets. "Because we're in the run-up to Christmas and because of the Christmas shopping season the retail sales data is always going to be important."

Earlier, in Asia, Japan's Nikkei 225 stock average jumped 2.5 percent to 10,107.87. Exporting stocks like Toyota Motor Corp. and Sony Corp. benefited from a weaker yen, which makes their products more competitive overseas.

Hong Kong's Hang Seng climbed 0.9 percent to 21,902.11 and South Korea's Kospi rose 0.3 percent to 1,656.90.

Elsewhere, Australia's benchmark gained 0.6 percent and Singapore's market advanced 0.5 percent. China's Shanghai index reversed early gains to close down 0.2 percent.

Heavy machinery stocks rallied after China's industrial production figures spurred hopes of increased demand. Komatsu jumped 3.4 percent and Kubota Corp. finished up 3.3 percent. Panasonic Corp. surged 4.4 percent on the previous day's announcement it had secured majority control of Sanyo Electric Co. in a $4.6 billion deal.

In the U.S. on Thursday, the Dow Jones industrial average rose 0.7 percent to 10,405.83 after a jump in exports offset concerns about an increase in unemployment claims. The Standard & Poor's 500 index 0.6 percent to 1,102.35.

Oil prices hovered near $71 a barrel in European trading as a warm winter and fears of a tepid recovery in the U.S. undermined demand for crude products like diesel and heating oil.

Benchmark crude for January delivery was up 38 cents to $70.92 in electronic trading on the New York Mercantile Exchange. On Thursday, the contract fell as low as $69.81 before settling down 13 cents at $70.54.