Europe stocks follow Asia up as bank fears ease

LONDON (Reuters) - European shares followed Asia sharply higher on Tuesday, rising around 3.5 percent in early trade, as investors took comfort from concerted efforts by government across the world to stabilize the financial system.

Traders work on the floor of the New York Stock Exchange October 13, 2008.

MSCI's main world stock index was up 3 percent after the European open, gaining more than 12 percent for the week to date after plunging 20 percent last week.

Its emerging market stock counterpart (.MSCIEF was up 5 percent, adding to Monday's 7.4 percent gain

Investments seen recently as relatively safe compared with stocks -- the Japanese yen and government bonds-- fell.