* FTSE up 0.9 percent
* Miners, oils rise with commodities after G20 announcement
* LSE climbs on M&A readacross
By David Brett
LONDON, Oct 25 (Reuters) - Britain's leading shares rose on Monday with miners and oils gaining, along with commodity prices, as the dollar weakened after the G20 finance ministers agreed to avoid competitive currency devaluations.
By 0811 GMT, the FTSE 100 was up 48.85 points or 0.9 percent at 5,790.22, having closed down 0.3 percent at 5,741.37 in the previous session.
The Group of 20 finance ministers agreed on Saturday to shun competitive currency devaluations but stopped short of setting targets to reduce trade imbalances, and struck a surprise deal to give emerging nations a bigger voice in the International Monetary Fund.
Miners, which were a hostage to falling metal prices on Friday when the dollar gained over the uncertainty ahead of the G20 announcement, were back on the front foot as base metals strengthened while the greenback weakened.
"Any dollar weakness does have an reverse relationship with the commodities," said Richard Hunter, head of equities at Hargreaves Lansdown.
"For those investors prepared to take slightly more of a risk chasing yields, (with interest rates remaining low) equities seem the asset class of choice."
Chilean copper miner Antofagasta climbed 4.6 percent helped by an upgrade from Goldman Sachs, which raised its rating to "buy" from "neutral".
Kazakhmys and Xstrata, up 4 and 3.2 percent, were the top performers on the FTSE 100 aided by target price upgrades from Goldman Sachs, while precious metals miner Fresnillo gained 3 percent as gold put on more than 1 percent.
Oil majors also traded higher along with crude, which rose over 1 percent. BP added 1.4 percent and Royal Dutch Shell climbed 0.7 percent.
Investors now shift focus back to the U.S. monetary policy.
A speech by Bernanke, scheduled at 1230 GMT, could shed light on the Fed's monetary easing move, which many have expected to take place as early as next month.
EXCHANGES M&A
Frankfurt stock market operator Deutsche Boerse and London Stock Exchange advanced 1.9 and 6.2 percent respectively, after Singapore Exchange's A$8.4 billion ($8.23 billion) takeover bid for ASX Ltd signalled industry consolidation may heat up again.
InterContinental Hotel Group, the world's top hotelier, rose 0.4 percent after a bullish third-quarter update from their American operations, which provided further evidence of recovery in the hotel industry.
Banks, however, lagged the wider market rally, weighed down mainly by Lloyds Banking Group, which fell 2 percent after Credit Suisse cut its target price on the British state-backed bank.
Credit Suisse said in a research note that falling property prices could have a negative impact on Lloyds, and that prospects for near-term capital return from the bank are limited.
Pearson fell 0.6 percent. The publishing group raised its full-year outlook again on Monday, saying it now expected adjusted earnings per share to be up 10 percent due to growth in its U.S. College and Financial Times units.
However, Numis which kept its bullish stance on Pearson said in a note that "directionally the update is as expected". (Editing by Jon Loades-Carter)