3:00 PM London – The UK indexes rose more than 1% after manufacturing activity rose to an eight-month high, home prices fell, and Irish manufacturing sector declined in January. Traders were optimistic that the Greek debt-swap talks too would be resolved by the weekend.

The UK indexes gained more than 1% in early trading after Chinese manufacturing data was better-than-estimated.

In London trading FTSE 100 Index gained 73.06 or 1.3% to 5,755.09 and the pound edged higher to $1.5850.

UK Manufacturing PMI Up

The UK manufacturing sector index increased in January, data from a survey by CIPS and Markit Economics showed today.

The seasonally adjusted purchasing managers'' index for the manufacturing sector rose to an eight-month high of 52.1 in January from 49.7 in December, revised up from 49.6.

UK Home Prices Fall

The UK home prices fell 0.2% on a monthly basis in January, the same rate of decline in December, data from the Nationwide Building Society showed.

Annual growth in home prices eased to 0.6% in January from 1% in December. A typical house costs £162,228, the lowest since February 2011.

Irish Factory Sector Declines

Ireland''s manufacturing sector declined in January, data from a survey by NCB and Markit Economics showed.

The seasonally adjusted purchasing managers'' index for the manufacturing sector dropped to 48.3 in January from 48.6 in December.

Gainers & Losers

BHP Billiton Ltd. closed up 2.3% to 2,172 pence after the diversified natural resources company exercised an option to sell its 37% non-operated interest in Richards Bay Minerals to Rio Tinto.

ICAP PLC surged 6.2% to 356.70 pence after the inter-dealer broker said revenues from its electronic foreign exchange and fixed income platforms in the final three months of 2011 were 7% lower than in the corresponding quarter of 2010 at $730 billion.

Imperial Tobacco Group Plc rose 1.4% to 2,301 pence after the tobacco company said tobacco first quarter net revenues declined 1%, while underlying growth was 3% compared to a year ago.

Segro plc gained 1.3% to 222.60 pence after the industrial property firm and Moorfield Real Estate Fund have through their recently established joint venture completed the acquisition of the UK Logistics Fund for £314.7 million in cash on a debt free, cash free basis from Hermes Real Estate Investment Management, Legal & General and LaSalle Investment Management.

United Utilities Group Plc advanced 1.3% to 609.50 pence after the water utility said revenue in the first-half increased 4% to £792.7 million from £762.4 million last year, reflecting mainly a 4.5% nominal regulated price increase.