By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- Britain's benchmark stock index edged higher on Friday, with the mining sector buoyed by growth data from China and shares of Rio Tinto PLC rebounding after the previous session's decline.

The FTSE 100 index rose 0.6% to 6,166.28, following a 0.5% gain Thursday after markets drew support from stronger U.S. economic data.

Miner Rio Tinto PLC (RIO) was among London's heavy hitters moving higher on Friday, up 2% after losing 0.5% by the end of the prior day. It had been hit harder in the session earlier owing to the departure of the company's chief executive on the back of a $14 billion impairment charge.

Analysts at Barclays Research said Friday that the departure of CEO Tom Albanese and those writedowns will herald a new era for the company. "We believe these decisions are an attempt by Rio's board to draw a line under the past five years of poor capital allocation in M&A and re-establish themselves as the industry leader in cost control both capital and operational," the analysts said in a note.

Goldman Sachs said the events leave Rio "looking for some goodwill in the market. To that extent, we believe Rio may look to give shareholders what they want, which is cash back." They said the potential of a buyback being announced in Rio Tinto's full-year results has risen.

News of stronger-than-expected growth out of China underpinned London's mining sector.

In the U.K., however, retail sales rose at their slowest annual pace for two years in December, adding to worries the economy shrank in the final quarter of 2012.

Barclays upgraded Meggitt PLC to overweight from equalweight, saying the engineering company that specializes in aerospace equipment's 20% valuation discount to peers is due to close. That will come as investors in the aerospace cycle look away from the pricier pure-play names. Meggitt and U.S-based Rockwell Collins Inc. (COL) are also good late-cycle plays. Barclays lifted its price target 16% to 520 pence. Meggitt shares rose 1.7%.

Among other movers in London, shares of Diageo PLC (DEO) rose over 1%. Consumer conglomerate Unilever PLC (UL) rose 1%.

In the food and consumer space, J Sainsbury PLC fell 1% after Goldman Sachs added the grocery chain to its conviction sell list, saying cash flow and balance sheets are a risk as momentum slows.

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