Markets worldwide start the week with strong gains as the re-election of Japanese Prime Minister Shinzo Abe prompts expectations of further stimulus in the world's third-largest economy.

Blue chip shares in London hit an 11-month high, adding 0.4% to 6,617, alongside similar gains across the rest of Europe.

Stronger-than-anticipated US job numbers late on Friday and the Japan election result prompted big moves in eastern markets overnight.

Shares in Tokyo gained 4.4% and other eastern markets also fared well, with 1%-plus gains in Shanghai, Hong Kong, India, Australia and Singapore.

Gains in London are centred around mining stocks as well as the return-to-favour of a number of sectors bombed out in recent weeks.

Diamond-to-iron ore miner Anglo American (AAL) leads the FTSE 100, up 5.2% to 783p, followed by commodities trader Glencore (GLEN).

Bargain hunters are also in the market for homebuilders and banks after share price declines following the UK's vote to leave the EU.

Barratt Developments (BDEV) and Royal Bank of Scotland (RBS) are among the bigger gainers in early trading, up 3.3% and 3.5%, respectively.

In corporate news, aerospace and defence outfit Rolls-Royce (RR.) pays €720 million (£614 million) for the 53.1% of Industria de Turbo Propulsores (ITP) it does not already own.

ITP manufactures aircraft engine components and was previously run as a joint venture between Rolls and Spain-headquartered engineer SENER.

Plastic products designer RPC (RPC) gains 2.3% to 809p as it says revenue grew significantly in the three months to 30 June, and ahead of expectations, without giving precise numbers.

Stronger-than-expected performance in its newly-acquired lids and seals manufacturer Global Closure Systems was a contributor, along with solid organic growth, the company says in a trading statement.

RPC is also in the process of buying London-listed British Polythene Industries (BPI).

Small cap commodity stocks movers

Miners are among the bigger movers in the small cap section of the market.

A bust-up with metals processor Rand Refinery leaves the board of Goldplat (GDP:AIM) fuming as the metals recycling business says the refiner has failed to pay it approximately £628,000 from a silver toll treatment deal.

The dispute means Goldplat will struggle to have some of its material processed during August while it looks for new refining partners.

Goldplat has yet to quantify how the disputed debt will be treated in its 30 June 2016 year-end accounts.

Shares trade 13.5% lower to 5.62p.

Shares in Australian mineral sands producer Base Resources (BSE:AIM) jump 23.6% to 8.5p ahead of a marketing roadshow in the UK over the coming week by chief executive Tim Carstens.

AIM-quoted Sound Energy (SOU:AIM) gains 16% to 28p as it reveals results from drilling on its Tendrara block in Morocco are 'significantly ahead of company expectations'.

Chief executive James Parsons says: 'We eagerly await the post stimulation flow rate but I believe the early results of this first well already both prove a material commercial rate at Tendrara and provide significant early clues as to the regional potential of the Eastern Morocco TAGI reservoir.'

Energy investment vehicle Highlands Natural Resources (HNR:AIM) dives 11.9% to 19.6p as a £4 million deal with Opera Investments (OPRA) for its Helios Two helium project in Montana is cancelled by mutual consent.

Big gains at Bango

Elsewhere, mobile payments play Bango (BGO:AIM) gains 4.6% to 57p as it says end user spend, a key operating metric, gained 283% to £159 million on an annualised basis in June. Margins, a key area of concern among investors in recent years, also held up well, the company says.

It's a mixed bag for household goods manufacturer McBride (MCB), as management reports sales were a little softer and profitability a little stronger than expectations in a trading update in the 12 months to 30 June. Shares gain 2.3% to 157p.

Shares in film studios operator Pinewood (PWS:AIM) fall 1.3% to 536p as it reports results for the year to 31 March. Revenue gained 10.9% and earnings per share increased 31.1% to 17.7p. A strategic review which could lead to a sale of the business remains ongoing.

Small cap pharmaceuticals fizz

Regenerative medicine specialist Collagen Solutions (COS:AIM) climbs 9.5% to 5.7p on revenues of £3.2 million, beating expectations for the year to 31 March.

New customers and the acquisition of Southern Light Biomaterials were behind the more than £2 million top line improvement during the period. EBITDA losses narrowed by £280,000 to £410,016.

Wound care specialist Tissue Regenix (TRX:AIM) improves 5.7% to 18.5p as its knee cartilage replacement product OrthoPure XT is now expected to receive marketing approval in Europe six months earlier than planned.

Issue Date: 11 Jul 2016