On Friday European stocks rose for an eighth day, the longest stretch of gains in 11 months, on speculation stress tests will show the region’s banks are robust. Asian shares advanced while US index futures fluctuated.

Banco Bilbao Vizcaya Argentaria SA rallied 3.6 per cent as El Economista said the Spanish bank scored the second-highest rating in stress tests of Europe’s largest lenders. Porsche SE climbed after raising its forecasts. Drugmakers limited gains, with Roche Holding AG sliding 2.6 per cent after patients showed hypersensitivity to an experimental diabetes treatment and Sanofi-Aventis SA plunging 4.5 per cent on renewed concern that one of its drugs may be linked to an increased risk of cancer.

The pan-European FTSEurofirst 300 index of top shares was 0.3 per cent higher at 1,044.81 points, on track to extend a rally into eight sessions, its longest winning streak in 11 months.

The FTSEurofirst 300 added 6.3 per cent in the previous seven sessions but is still down 0.1 per cent for 2010, having suffered in April and May when fears of a debt contagion in the eurozone gripped investors.

Banks were among the biggest gainers, with Societe Generale, BBVA and Credit Agricole up 1.4-2.7 per cent. In a move watched closely by financial markets, European leaders agreed on Thursday to publish details of stress tests showing the financial health of individual banks next month and to toughen budget rules to restore confidence in their currency union.

Japanese stocks fell with consumer lenders sliding and dragging down banks as a stricter lending rule clouded earnings prospects. The Topix index dipped 0.3 per cent while the Nikkei 225 Stock Average lost 0.04 per cent.

US stock-index futures fluctuated, with the Standard & Poor’s 500 Index poised for second week of gains, as former Federal Reserve Chairman Alan Greenspan said the US may soon face higher borrowing costs.