Europe's major stock markets and the dollar advanced Monday, mirroring gains across most of Asia, as investors reacted to bright US jobs data.

Markets advanced on Friday's forecast-busting US non-farm payrolls (NFP) numbers, which fuelled expectations that the Federal Reserve will lift US interest rates at least once more before year's end.

New York stocks surged Friday after the US government's Labor Department said the world's top economy created almost 50,000 more jobs than expected in June, reinforcing the view that it is back on track.

The news was greeted with open arms by dealers after a tough week on trading floors caused by geopolitical tensions following North Korea's latest missile test, analysts said.

"The overall consensus is that the strong NFP report will play nicely into the Fed's hands and strengthen their views in favour of another rate hike this year -- hence the dollar is posting gains against its peers," said ADS Securities analyst, Konstantinos Anthis. 

Fed boss Janet Yellen will this week appear in her twice-annual testimony to Congress, which will be pored over for clues about the US central bank's rate plan as well as the winding down of a bond-buying programme put in place during the financial crisis.

Investors on Monday also mulled the weekend G20 gathering in Hamburg.

"The G20 meeting took place over the weekend and it failed to produce any meaningful move for the currency market," said Think Markets analyst Naeem Aslam.

"Trade war and the climate change were the topics which brought the usual rift between the G19 leaders and the US.

"However, in the absence of any major headline, the event has failed to stimulate the kind of volatility which one would expect."

Asian stock markets were meanwhile buoyed Monday also by takeover activity.

Shares in Wanda Hotel Development soared almost 50 percent after its parent said it would sell dozens of hotels and other projects to developer Sunac China Holdings in a US$9.3-billion deal aimed at reducing debt.

Also in Hong Kong, state-run Cosco Shipping jumped 5.4 percent on news it would pay US$6.3 billion for Orient Overseas International Ltd, creating a global shipping titan. Orient soared 20 percent.

 - Key figures around 1100 GMT - 

London - FTSE 100: UP 0.3 percent at 7,373.80 points

Frankfurt - DAX 30: UP 0.7 percent at 12,477

Paris - CAC 40: UP 0.4 percent at 5,163.40

EURO STOXX 50: UP 0.5 percent at 3,132.90

Tokyo - Nikkei 225: UP 0.8 percent at 20,080.98 (close)

Hong Kong - Hang Seng: UP 0.6 percent at 25,500.06 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,212.63 (close)

New York - DOW: UP 0.4 percent at 21,414.34 (close)

Euro/dollar: DOWN at $1.1391 from $1.1400 at 2100 GMT on Friday

Pound/dollar: DOWN at $1.2868 from $1.2878

Dollar/yen: UP at 114.24 yen from 113.91 yen

Oil - Brent North Sea: DOWN 35 cents at $46.36 per barrel

Oil - West Texas Intermediate: DOWN 35 cents at $43.88