LONDON, Aug 22: European stock markets advanced on Tuesday after Tokyo shares hit a three-month peak and despite a weak overnight showing on Wall Street, dealers said. London's FTSE 100 index of leading shares added 0.24 per cent to 5,929.20 points, in Paris the CAC 40 gained 0.26 per cent to 5,117.68 points and Frankfurt's DAX 30 index won 0.47 per cent to 5,790.77.

The DJ Euro Stoxx 50 index of leading eurozone shares increased 0.45 per cent to 3,794.41 points.

The euro stood at 1.2851 dollars.Japanese share prices jumped on Tuesday to close at the highest level for over three months on bargain hunting amid optimism about prospects for the local economy, dealers said.

US stocks had snapped a five-day winning streak on Monday as tensions over Iran's nuclear program drove oil prices up and encouraged investors to cash in their profits.

In Paris trade on Tuesday, French construction group Lafarge was one of the strongest performing stocks, winning 1.20 per cent to 101.4 euros amid press reports that investment funds were circling the company's roofing business.

A France-based dealer welcomed the reports as “positive”, noting that “'the extent of interest is higher than expected, and could see the price exceed expectations”.

However, shares in the European Aeronautic Defence and Space company (EADS) fell sharply after Dutch bank ABN Amro lowered its recommendation on the group on currency concerns.

EADS was showing a loss of 1.32 per cent at 22.47 euros. The group's shares have now lost 29.53 per cent since January 1.

Mining companies bolstered gains on the London stock market as gold prices forged ahead.

Antofagasta shares jumped 1.61 per cent to 442.75 pence and Vedanta Resources gained 1.31 per cent to 1,397 pence.

BHP Billiton added 1.24 per cent to 1,063 pence despite an ongoing strike by unionized workers at Minera Escondida, the world's largest copper mine, which is majority owned by the Anglo-Australian group.

In Wall Street trade on Monday, the Dow Jones Industrial Average fell 0.32 per cent to close at 11,345.05 points and the technology-rich Nasdaq index ended 0.75 per cent lower at 2,147.75 points.

The broad-market Standard and Poor's 500 index lost 0.37 per cent to 1,297.52 points.—AFP