* FTSEurofirst 300 up 0.8 percent, hits 4-1/2-month high
* Financials surge following Basel rules on bank capital
* Miners advance on encouraging Chinese factory data
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By Atul Prakash
LONDON, Sept 13 (Reuters) - European shares climbed to their highest in four-and-a-half months on Monday as financials surged on new bank capital rules, while upbeat factory data from China, the world's top metal consumer, boosted mining stocks.
At 1014 GMT, the FTSEurofirst 300 index of top European shares was 0.9 percent higher at 1,090.19 points after rising to a high of 1,093.74, the highest since late April.
The STOXX Europe 600 banking index topped the gainers list, up 1.8 percent, as the bank capital rules agreed by global regulators brought relief to the global banking sector.
"There was a fear that the banks would have to raise even more capital and have to do it more quickly and that would have meant more cash calls," said Felicity Smith, fund manager at Bedlam Asset Management.
"I don't think the troubles are over because obviously if loan losses worsen again, then more banks could still find that they need to raise capital. But at least people now know what the requirements would be."
The new requirements, known as Basel III, will demand banks hold top-quality capital totalling 7 percent, against the present requirement of 2 percent, of their risk-bearing assets but a long lead-in time eased fears that lenders will have to rush to raise capital.
Banks raced higher, with Standard Chartered, HSBC, Societe Generale and Credit Agricole jumping 2.4 to 6.7 percent.
"We regard the announcement as another step in reducing uncertainty. We are positive on European banks overall," Matt Spick, analyst at Deutsche Bank, said in a research note.
"The strongest positioned banks look to us to be the UK banks and the Swiss banks ... but risks from an economic slowdown could still lead to rising bad debt charges and losses from capital markets."
Germany's Deutsche Postbank, however, slumped 7.3 percent after Deutsche Bank said on Sunday it would offer to buy the rest of Postbank for 24-25 euros a share, below Friday's closing price of 27.035 euros.
Deutsche Bank Chief Executive Josef Ackermann said it needs 7.7 billion euros ($9.9 billion) to absorb Deutsche Postbank, Germany's largest retail bank by clients.
MINERS ADVANCE
Miners got strength after figures showed Chinese factories ramped up production in August and money growth easily topped expectations, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.
Copper prices rallied on hopes of increased demand for raw materials, overshadowing concerns over lacklustre growth prospects in developed economies.
The STOXX Europe 600 basic resources index gained 1.8 percent, while BHP Billiton, Rio Tinto, Xstrata and ENRC rose 2 to 3.2 percent.
The technical picture was positive. The Euro STOXX 50, the euro zone's blue-chip index, gained 1.1 percent to 2,809.42 points to hover above its 61.8 percent Fibonacci retracement of the index's fall from an April high to a May low. It also stayed above its 200-day moving average of 2,780.54.
"The index is gaining and the oscillators are moving higher, but they are getting close to the top end of their recent range. It is testing a pretty significant resistance area," said Bill McNamara, technical analyst at Charles Stanley.
"As things stand right now, it wouldn't be surprising if this index pushed up through those resistance levels. The magnitude of the trading range that has been going on since early May would imply a move at least up to the highs that we reached in April, and that is around the 3,000 level."
The market also got some support from a forecast by the European Commission which said the euro zone economy is likely to grow almost twice as fast this year as previously thought, mainly because of much stronger growth in its biggest economy Germany.
Among individual movers, Primark owner Associated British Foods fell 3.3 percent as it warned sales growth over the summer slowed at its fashion discount retailer and margins will fall next year due to higher cotton costs and taxes. (Editing by Jon Loades-Carter)