European stocks extend rally amid brisk investment inflows

European stocks were rising with euro zone shares strongly outperforming again as global investors bet that a weaker euro would boost the region's economy and corporate earnings.

Athens' benchmark ATG jumped 2.8 percent after Greek Prime Minister Alexis Tsipras assured European Union creditors at late-night crisis talks in Brussels that his coalition would soon present a full set of economic reforms in order to unlock cash to stave off bankruptcy.

Bank of America-Merrill Lynch said European equity funds had seen $5.4 billion investment inflows in the past week, bringing total inflows for the last 10 weeks to $42 billion, fuelled by expectations that the European Central Bank's asset-buying scheme would revive growth.

The FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,600.26 points, with Germany's DAX gaining 1 percent and Spain's IBEX rising 0.8 percent.

The DAX, home of some of the euro zone's biggest exporters, has surged 22.6 percent since the start of the year, strongly outpacing Wall Street where the S&P 500 is up 1.5 percent over the same period.

The euro has fallen by about 25 percent against the dollar over the past year. This is set to give a major lift to European companies, as roughly 50 percent of euro zone earnings are coming from outside the region.

Shares in Holcim rose 1.3 percent and Lafarge added 3.1 percent after the companies agreed new terms on a planned merger that would create the world's biggest cement firm. Shares in peer CRH, set to buy assets from Holcim and Lafarge, rose 5 percent.

Bucking the trend, France's Zodiac dropped 8.5 percent after the aerospace group issued a profit warning, citing a rise in costs.

Meanwhile, Japan's Nikkei share average hit a fresh 15-year high in choppy trade and gained for a sixth week on expectations for better shareholder returns, but Nintendo Co dived on profit-taking after soaring for two days.

The Nikkei benchmark ended 0.4 percent higher to 19,560.22, the highest closing level since April 2000, after trading in negative territory earlier. For the week, the benchmark rose 1.6 percent, posting six straight weekly gains.