* FTSE 100 index up 0.4 percent
* Banks extend rally after recent weakness, led by HSBC
* Oils higher; miners weak as base metal prices retreat
* Tesco up after solid first-half results
By Jon Hopkins
LONDON, Oct 5 (Reuters) - Britain's top share index moved higher early on Tuesday, recovering after falls in the previous session, as banks, oil majors rallied and Tesco gained after results, although weak mining issues limited the advance.
At 0758 GMT, the FTSE 100 was up 20.35 points, or 0.4 percent at 5,576.32, having fallen 0.5 percent on Tuesday.
"It is a bit like pulling teeth at the moment, with not much too go on. Everyone is hoping that something might get sparked by upcoming data and corporate results season, but no one wants to push too hard until then," said Phil Gillett, a trader at Spreadex.
Banks were the best performing blue chips, led by heayweight HSBC, up 1.1 percent, as the sector continued its recovery after falls last week on fresh European debt concerns.
Energy issues also provided fuel to lift the FTSE 100 higher as crude prices rallied, with BP the best performer, up 0.5 percent.
BP may sell its main Vietnam assets worth around $1 billion to its Russian joint venture TNK-BP without inviting other parties to bid, its chief executive Bob Dudley said on Monday.
Tesco gained 1.1 percent as the world's third-biggest retailer, posted a 14.1 percent rise in first-half profit, with strong growth in Asia offsetting a sluggish performance in its main British market.
Supermarkets peer J Sainsbury added 0.5 percent ahead of a trading update due on Wednesday.
TUI Travel was the top FTSE 100 gainer, up 3.6 percent after the tour operator said in a trading update that summer 2010 traded well, while trading for winter 2010/11 had further strengthened across all sectors.
Mid cap peer Thomas Cook Group gained 1.7 percent. Invensys was also a good blue chip gainer, adding 1.3 percent after Citigroup upped its rating to "buy".
MINERS A DRAG
Weakness in metals & mining issues was a drag on blue chip sentiment as base metal prices eased back, with Eurasian Natural Resources and Antofagasta down 1.3 and 0.7 percent respectively.
Kazakhmys was the worst off, down 1.7 percent after the company said chairman Vladimir Kim had sold around an 11 percent stake in the company to the Kazakh National Welfare Fund, reducing his holding to 27.9 percent.
In reaction, Evolution Securities cut its rating for Kazakhmys to "reduce" from "add".
Inmarsat was the top FTSE 100 faller, losing 3.3 percent after U.S. hedge fund Harbinger Capital Partners said on Tuesday it sold a 14.1 percent stake in the British satellite operator for around 410 million pounds.
Investors were awaiting September's UK services PMI report, due at 0828 GMT, for further clues as to the state of the domestic economy. The index reading is forecast to come in at 51.0, a slight dip from the 51.3 recorded in August.
But investors' main macro focus remained on U.S. nonfarm payrolls on Friday, and interest rate decisions from the Bank of England and the European Central Bank on Thursday.
In a surprise move on Tuesday, the Bank of Japan cut interest rates and pledged to keep rates at zero until prices are seen stable.
Australia's central bank left interest rates on hold, confounding expectations for a rise, though the central bank did emphasise that higher rates would likely be needed in time to contain inflation. (Editing by Hans Peters)