By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets mirrored overnight gains in Asia and extended the prior day's rally on Wednesday, with investors eyeing earnings reports from major companies such as Barclays PLC and Heineken NV.

The Stoxx Europe 600 index rose 0.2% to 293.32, after putting in its best daily performance since last summer on Tuesday.

Barclays shares (BCS) rose 2.3%, after the bank posted a first-quarter net profit of 839 million pounds ($1.28 billion) compared to a loss of GBP598 million in the same quarter last year.

Peugeot SA shares rallied 7.7%, after the car maker said it may cut costs if the European automobile market is worse than expected in 2014.

On a more downbeat note, Heineken lost 5.7%, after the brewer said it sees volume pressure on all regions as it posted a group beer volume decline of 2.7% in the first quarter.

For the broader European stock markets, investors shrugged off a downbeat reading on German business confidence. The Ifo business-climate index reportedly fell to 104.4 points in April from 106.7 in March, missing expectations of a 106.2 reading.

In Asia, most markets closed higher, with Japanese stocks climbing amid expectations of improved earnings growth.

U.S. stocks pointed to a higher open on Wall Street, putting them on track for a fourth-straight day of gains.

Among country-specific indexes in Europe, France's CAC 40 index rose 0.6% to 3,806.79. Shares of AXA SA climbed 2.3%, after Citigroup added the insurance firm to its Europe focus list.

In Germany, Deutsche Post AG climbed 3.5%, after J.P. Morgan Cazenove lifted the firm to overweight from neutral and added it to its European analyst focus list, citing year-to-date underperformance.

The DAX 30 index rose 0.3% to 7,681.85.

The U.K.'s FTSE 100 index gained 0.2% to 6,420.75.

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