FTSE closes up 1.2 percent

By Harpreet Bhal

LONDON (Reuters) - Top shares closed 1.2 percent higher on Monday, as miners and oil firms rose, underpinned by firmer commodity prices on the back of bullish economic data, while RBS fell as the lender faces asset sales.

The FTSE 100 .FTSE closed 59.95 points higher at 5,104.50 points, recouping some losses from Friday's 1.8 percent fall.

The index was down 1.7 percent overall in October, the first monthly drop since June, but is still up about 48 percent since its March low.

Miners were supported by strong manufacturing data from the United States and China which reinforced the view that a recovery in demand was under way. Eurasian Natural Resources (ENRC.L), Vedanta Resources (VED.L), Lonmin (LMI.L) and Rio Tinto (RIO.L) rose 4.5 to 5.5 percent.

Rising to the top of the gainers list, Randgold Resources (RRS.L) added 6 percent after it agreed with AngloGold Ashanti to buy an additional 20 percent in the Moto gold project in the Democratic Republic of Congo for about $113.6 million (69.2 million pounds).

Equities drew strength from data showing the U.S. manufacturing sector grew in October for a third consecutive month and at a faster pace than expected.

In the UK the CIPS/Markit purchasing managers index of manufacturing activity rose at its fastest rate in two years and new orders rose at their fastest in almost six years.

Meanwhile, HSBC's China Purchasing Managers' Index (PMI) rose to an 18-month high in October of 55.4, pointing to sustained strength in the fast-growing manufacturing sector.