* FTSEurofirst 300 index up 0.2 percent
* Commodity stocks up on hopes for China inflation data
* Wood Group soars on $2.8 billion disposal
* Optimism on earnings ahead of latest batch of reports
By Brian Gorman
LONDON, Feb 14 (Reuters) - European shares hit a 29-month high on Monday, boosted by a renewed optimism for corporate earnings and an encouraging Chinese trade figures.
At 1144 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.2 percent at 1,176.11 points, and after reaching a peak for the session of 1,182.80, its highest since early September 2008.
The index was extending gains from Friday after Hosni Mubarak stepped down as Egypt's president.
"The rally has further to go. The market has overdiscounted the problem of tightening (interest rates) in emerging markets," said Bob Parker, senior adviser at Credit Suisse.
He added: "Corporate earnings numbers will be good. We have had strong economic data out of Germany, and Egypt has not deteriorated."
Traders also said there was talk that China's consumer price index may have risen 4.9 percent in the year to January, well below the forecast of 5.3 percent, but they added it might have been the result of changes to the weighting of the consumer price index (CPI).
Meanwhile, China's trade surplus fell, with surprisingly strong imports, notably of copper, highlighting the country's massive appetite for raw materials and its solid export growth hinting at solidifying recoveries in the U.S. and European economies.
Mining stocks gained on the China news, with tin hitting a record and copper prices up.
Antofagasta, Vedanta and Xstrata rose between 0.9 and 1.1 percent.
"Inflation has been the major worry and there has been a fear of monetary overkill, but until the (Chinese inflation) data is released (on Tuesday) we could see a bit of volatility in the market," said Heino Ruland, strategist at Ruland Research in Frankfurt said.
Oils were also in demand, partly on stronger crude prices, with Galp Energia up 2.7 percent, adding to the gains made in the previous session when it reported profits at the high end of forecasts.
John Wood Group soared 13.2 percent after the energy services group agrees to sell its well support division to General Electric for $2.8 billion.
CREDIT SUISSE GAINS
Credit Suisse gained 2.8 percent after the Swiss bank said it will issue 6 billion Swiss francs ($6.2 billion) of contingent convertible capital bonds in a move to satisfy stricter capital rules.
On the downside, Nokia fell 3.8 percent, extending a sharp decline from Friday, as analysts cut their recommendations and forecasts on 2011 smartphone sales due to its deal with Microsoft.
In other news European finance ministers will discuss how to give their euro zone rescue fund more flexibility and firepower and how to tackle debt crises after 2013, but final decisions are unlikely before March.
President Barack Obama is to formally propose a budget later on Monday that would cut the U.S. deficit by $1.1 trillion over 10 years, setting the stage for a bitter fight with Republicans who vow even tougher spending controls.
Across Europe, the FTSE 100 index was 0.3 percent lower, Germany's DAX was up 0.2 percent and France's CAC 40 fell 0.3 percent.
Major European companies reporting earnings this week include Barclays, Societe Generale and Daimler. (Additional reporting by Joanne Frearson; Editing by Greg Mahlich)