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* Fashion retailers ASOS, JD Sports gain on M&A deals
* Silver prices jump to eight-year highs
* UK factory growth hit in January
* FTSE 100 up 0.9%, FTSE 250 adds 0.8%
(Updates to close)
By Shashank Nayar, Amal S and Shivani Kumaresan
Feb 1 (Reuters) - British shares rose on Monday, led by
gains in mining stocks as silver became the latest target of a
retail investor trading frenzy, while fashion retailer ASOS
gained on a deal to buy rival brands and JD Sports surged
following its second acquisition in the United States.
The blue-chip FTSE 100 index .FTSE gained 0.9%, recovering
from its worst session in three months, with miners .FTNMX1770
and construction stocks .FTNMX2350 gaining the most. The
mid-cap index .FTMC added 0.8%.
BHP Group BHPB.L , Rio Tinto RIO.L and Anglo American
AAL.L were the top gainers in the FTSE 100 index.
Silver prices XAG= surged to an eight-year high,
silver-mining stocks leapt and bullion dealers were scrambling
as small-time investors piled in to the metal. "I still think there is difficult times ahead as far as the
markets are concerned though it is a positive start to the month
with the moves in mining stocks giving a lift," said Craig
Erlam, senior market analyst at OANDA.
British manufacturers suffered a double hit last month as
COVID-19 disruption to global shipping combined with new trade
barriers with the European Union, a survey showed. The FTSE 100 has recovered nearly 30% from its March 2020
lows and is 15% away from its highest point last year, led by
stimulus support and re-opening optimism, but a recent surge in
coronavirus infections and fresh lockdowns capped further gains.
Shares of ASOS ASOS.L gained 6.9% after the fashion
retailer's acquisition of Topshop, Topman, Miss Selfridge and
HIIT brands from the administrators of Philip Green's collapsed
Arcadia group for 265 million pounds ($364 million).
Britain's biggest sportswear retailer JD Sports JD.L
jumped 7.0% on a takeover deal to buy DTLR Villa, its second
acquisition in the United States, as the retailer expands its
business on the west coast.