European shares boosted by mining stocks
* FTSEurofirst 300 up 0.1 percent
* Miners lead market higher, up 2.2 percent
* KPN up around 16 pct on America Movil offer
LONDON, Aug 9 (Reuters) - European shares rose on Friday, buoyed by miners, as reassuring economic data out of top metals consumer China prompted investors to hunt out bargains in the badly beaten-down sector.
The FTSEurofirst 300 was up 0.1 percent at 1,223.62 by 1100 GMT.
China's industrial output rose by 9.7 percent in July, above expectations, while retail sales increased by 13.2 percent and consumer price inflation steadied, data showed on Friday.
The data, which added to a run of releases suggesting the world's second-largest economy may be stabilising after more than two years of faltering growth, helped to drive gains of some 2.2 percent in the STOXX 600 Basic Resources index.
Over the course of this year, miners have slumped some 17 percent, the worst performers by some margin, with the sector having seen its 12-month forward price/earnings ratio fall to 10.76 times from 11.32 times over the period, according to Thomson Reuters Datastream.
"We've taken some profits but still see quite a lot of opportunities in stocks that have been derating," said Smith & Williamson fund manager Tineke Frikkee, who has been adding to her holdings in Rio Tinto.
Rio trades on a 12-month forward price/earnings ratio of 8.45 times against its 10-year average of 10.18 times, Datastream showed.
KPN topped the FTSEurofirst 300 leader board, up 15.8 percent, as Mexican billionaire Carlos Slim's America Movil made a bid for the shares in the Dutch telecoms group it does not already own.
After a rally of some 10 percent from late June lows, and as the holiday season gets under way, volumes dry up, and second-quarter earnings unwind, traders reckoned a period of consolidation might be on the cards for European equities.
While the index rose on Friday, it looks to be heading for a slight weekly loss as uncertainty about when the U.S. Federal Reserve might start scaling back its stimulus programme, which has supported global assets, is keeping investors on edge.
However, fund managers, heartened by signs the euro zone economy is starting to improve, were on the hunt for beaten-down stocks with hidden value, expecting to find the biggest gains in the hardest hit sectors of the most troubled countries.
Kevin Lilley, European equity fund manager at Old Mutual Global Investors, sees the clearest opportunities among financials - banks in particular.
"They've been going through a healing process for the last few years. Most of them have now rebuilt their capital bases and are going to be on track to start paying dividends again, which will then open them up to a new wave of investors coming in."
He highlighted French banks, which he said tend to have a greater European focus. He has recently bought both Societe Generale and BNP Paribas.