* FTSEurofirst 300 index up 0.9 percent, hits 5-week high
* Miners recover after early losses
* Slovakia expected to approve euro zone rescue fund
* Equity valuations still attractive
By Brian Gorman
LONDON, Oct 12 (Reuters) - European shares hit their highest level in more than five weeks on Wednesday, on better-than-expected economic data in the euro zone and with miners rising on stronger metals prices due to restocking by Chinese consumers.
Optimism that Slovakia will soon give its long-awaited approval for the euro zone rescue fund also helped sentiment. The euro rose to a three-week high against the dollar, further helping to boost metal prices.
Euro zone industrial production was much stronger than expected in August, data showed on Wednesday, indicating the economic slowdown in the third quarter might be smaller than feared.
The European mining index gained 2 percent, tracking a rise in copper and other metals. Analysts said Chinese consumers were buying copper to meet immediate demand, which has tightened supply in Asia.
At 1136 GMT, the FTSEurofirst 300 index of top European shares was up 0.9 percent at 970.12 points, on track to gain for the fifth session in six and having risen to 972.50, the highest since early September.
The index is up nearly 14 percent from a 2011 low it hit last month, but still down more than 13 percent in 2011, hurt by the euro zone debt crisis.
"I can see how people might say it's not as bad as some were fearing a few weeks ago. A lot of economic indicators are suggesting that things are ticking along," said Bill Dinning, at Kames Capital in Edinburgh, which has 48.8 billion pounds ($76 billion) under management.
"But I'm struggling to be optimistic. It's still a low growth environment. If there were some kind of credible policy announcement in Europe, that would do a lot for sentiment."
Dinning said he was sticking with defensive sectors such as healthcare, telecoms and food producers.
Parties in Slovak Prime Minister Iveta Radicova's outgoing government will hold talks with the opposition to reach a quick agreement on ratifying a plan to strengthen the euro zone's EFSF rescue fund, a party spokesman said.
Lawmakers rejected a plan to bolster the European Financial Stability Facility (EFSF) in a vote on Tuesday, toppling the centre-right cabinet, but a second vote with opposition support is likely to approve the pact within days.
Slovakia is the only euro zone member yet to ratify the plan.
"Markets are hearing what they want to hear, that the no vote will likely be overturned, the domestic honour of local politicians having been satisfied," said Bill Blain, strategist at NewEdge Group.
GREEK BANKS GAIN
Nearly all European sectors rose, with cyclicals such as autos up 3.2 percent, outperforming.
However, Greek banks were the standout gainers, up 9 percent after inspectors from the 'troika' of the European Union, IMF and European Central Bank said on Tuesday an 8 billion euro loan tranche to Greece should be paid in early November.
Mining shares had come under pressure earlier in the session after U.S. aluminum heavyweight Alcoa kicked off third-quarter reporting season with weaker-than-expected results overnight following tough economic conditions.
"Caution is still the watchword," said Keith Bowman, equity analyst at Hargreaves Lansdown.
"But we can't read too much into just one set of results."
Attractive valuations are tempting some investors back into the market. Equity valuations on Thomson Reuters Datastream showed the STOXX Europe 600 carrying a one-year forward price-to-earnings of 8.3 against a 10-year average of 13.2.
Investors await European Commission President Jose Manual Barroso setting out a recapitalisation for Europe's troubled banking sector later on Wednesday. (Additional reporting by Atul Prakash; Editing by Hans-Juergen Peters) (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net)) ============================================================ For rolling updates on what is moving European shares please click on ============================================================ For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. STOXX Europe index.................................. Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................
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