* Friends Provident up on takeover deal
* International Power boosted by results
* Market eyes UK data, FOMC
By Harpreet Bhal
LONDON, Aug 11 (Reuters) - Britain's top share index moved 0.4 percent higher on Tuesday, tracking gains in Asia, as energy majors and mining stocks were in demand, while Friends Provident rose on an improved takeover offer by Resolution.
By 0806 GMT, the FTSE 100 climbed 16.30 points to 4,738.50, mirroring strength in Asia where Japan's Nikkei hit its highest close in 10 months.
Analysts said the market will take its direction this week from UK economic data and the U.S. Federal Reserve two-day interest rate-setting meeting, which concludes on Wednesday.
"There is potential to push higher if we continue to get better-than-expected economic readings," said James Hughes, analyst at CMC Markets.
Oil majors were the biggest gainers on the index, with BP, Cairn Energy, Royal Dutch Shell and Tullow Oil up 0.8-1.5 percent as crude prices stayed above $71 a barrel.
Mining companies were up as metals prices remained in positive territory. Anglo American, BHP Billiton, Lonmin, Rio Tinto and Xstrata added between 0.1 and 1.2 percent.
Power generation firm International Power was the top riser, up 5.7 percent, after it reported a 12 percent rise in profits as currency translation effects helped to offset challenging U.S. and British markets.
Friends Provident rose 1.5 percent, after Resolution announced a 1.86 billion pound takeover that valued the life insurer at a 6 percent premium to Monday's closing price.
Resolution fell 3.4 percent after the announcement.
Among other individual risers, Smith & Nephew added 1.5 percent, after Morgan Stanley raised the medical device maker to "equal-weight" from "underweight" and upped its price target to 504 pence from 463 pence.
BANKS MIXED
Banks were mixed, with Barclays, Lloyds Banking Group and Royal Bank of Scotland falling 0.8-3.1 percent, while HSBC and Standard Chartered both climbed around 0.7 percent.
The government is close to hammering out an agreement about how to insure loans granted to Royal Bank of Scotland and Lloyds Banking Group under its 580 billion pound asset protection scheme, the Guardian newspaper reported.
InterContinental Hotels fell 1.6 percent as the world's biggest hotelier moved to cut costs further as it warned of tough trading through the rest of 2009 and reported a 38 percent drop in first half profit.
TUI Travel fell 1.3 percent ahead of its third quarter results on Wednesday. Its German owner TUI AG said it was preparing to give its former container shipping unit Hapag-Lloyd a further 420 million euros, people familiar with the situation told Reuters.
On the economic front, British retail sales rose last month compared with a weak July last year, a survey showed on Tuesday, after changeable weather helped seasonal clothing lines, food and homeware sales.
The decline in house prices in England and Wales eased further in July and there is growing evidence that market conditions are stabilising after the financial crisis and recession, the Royal Institute of Chartered Surveyors said.
UK June trade figures are due at 0830 GMT.
(Editing by John Stonestreet)