The JSE was firmer in midday trade on Monday, buoyed by stronger resource counters amid higher metal prices.

At noon, the JSE all share index was 1.27 percent firmer, with resources gaining 2.41 percent, platinum miners up 3.30 percent and gold miners up 1.73 percent.

Financials and banks picked up 0.51 percent and 0.95 percent respectively, while industrials added 0.48 percent.

The rand was bid at 7.72 to the dollar from 7.70 when the JSE closed on Friday. Gold was quoted at $1071.60 a troy ounce from $11057.95 at the JSE's last close, and platinum was at $1488.50/oz, from $1477.50/oz at the bourse's previous close.

"We saw a rally on Wall Street on Friday and that seems to have followed through to the local market today. Resources and platinums are leading the charge," a local equities trader said.

Dow Jones Newswires reports European stocks posted strong gains Monday, led higher by basic-resources issues, amid rising metals prices and as trading updates from Xstrata and Randgold Resources pleased investors.

Randgold Resources rose 6.8 percent after the company said its fourth-quarter net profit more than tripled due to record production at its Loulo gold mine and on the back of higher gold prices. The miner also increased its annual dividend by 30 percent to $0.17 a share.

Meanwhile, Xstrata added 5.1 percent despite posting a 41 percent fall in net profit before exceptional items, as investors took heart from the company's reinstatement of its dividend. Xstrata said it would pay a final dividend of eight cents - the first since its interim report for 2008.

By 0900 GMT, the pan-European Dow Jones Stoxx 600 index was up 0.9 percent at 239.71, while London's FTSE 100 was 1.1 percent higher at 5114.67. Frankfurt's Dax was up 1.1 percent at 5496.50 and Paris's Cac-40 rose 1.4 percent to 3612.76.

Stocks were also helped by a higher close on Wall Street Friday, where they edged ahead after a volatile day's trading as materials companies including Alcoa climbed after unexpected improvements in economic data. The technology sector advanced, extending gains from companies reporting strong earnings this week, including Cisco Systems. However, industrial giant Boeing fell as investors fretted about European sovereign debt.

The Dow Jones Industrial Average rose 10.05 points, or 0.1 percent, to 10 012.23.

The Dow fell 0.6 percent over the week, its fourth consecutive week of losses. Meanwhile, the technology-heavy Nasdaq Composite rose 15.69, or 0.7 percent, to 2141.12. It fell 6.23 points, or 0.3 percent, over the week, also its fourth straight down week. The Standard & Poor's 500 index gained 3.08 points, or 0.3 percent, to 1066.19 on Friday.

Meanwhile, Asian markets suffered declines Monday on uncertainty over sovereign debt in the euro zone, but bargain-buying in banks and miners limited losses in some markets.

Japan's Nikkei 225 fell 1.1 percent to 9951.82 for its first finish below the psychologically important 10 000-point level in more than two months. South Korea's Kospi shed 0.9 percent, Australia's S&P/ASX 200 gained 0.2 percent, China's Shanghai Composite slipped 0.1 percent, Hong Kong's Hang Seng declined 0.6 percent and Taiwan's Taiex ended flat.

"Investors will likely remain cautious until additional measures to solve fiscal problems in Greece and other European countries are realized. Also, risk aversion still looks high," said Lee Jin-woo at Mirae Asset Securities in Seoul.