European stocks rose on Wednesday, as London played catch-up with Frankfurt and Paris after a long Christmas break.

The British market fizzed one per cent higher, compared with the closing level on Friday.

In the eurozone, Paris won 0.2 per cent and Frankfurt added 0.1 per cent to extend solid gains on Tuesday.

"UK markets have reopened higher, playing catch up," said Victoria Scholar, investment head at Interactive Investor.

AvaTrade analyst Naeem Aslam cautioned however that "trading volume continues to remain on the low side" with many investors away for an extended holiday.

Oil prices fell one day after China's moves to reopen had sparked hopes for renewed demand from the world's biggest importer of crude, while traders remain on edge over Russian supplies.

Elsewhere, Asian markets mostly fell on Wednesday after a mixed Wall Street session, as China's move to reopen also revived inflation worries.

China has abruptly reversed tight pandemic curbs that kept the world's second-largest economy isolated for three years.

On Monday, Beijing announced it was ending quarantine measures for overseas arrivals from January 8, the latest move to loosen its zero-COVID regime, after it dropped mandatory testing and lockdowns earlier this month.

China's scrapping of curbs has spurred hopes for its economic revival.

"The good news is that inflation subsides as China reprises its role as a supplier of low-cost goods globally and supply chain bottlenecks ease," said analyst Stephen Innes of SPI Asset Management. However, he also warned that China's accelerating demand would push up prices for commodities, in turn further fuelling global inflation. 

The good news is that inflation subsides as China reprises its role as a supplier of low-cost goods globally and supply chain bottlenecks ease- SPI Asset Management analyst Stephen Innes

Meanwhile, Hong Kong stocks jumped as investors digested the COVID news from Beijing on the first trading day after the Christmas break.

Hong Kong chief executive John Lee also announced a further easing of the city's remaining COVID measures.

Oil traders remain on tenterhooks after Moscow on Tuesday banned exports to countries complying with a price cap on its crude, briefly lifting the market.

The price ceiling of $60 per barrel agreed by the European Union, G7 and Australia came into force in early December and seeks to restrict revenues for Russia, amid its ongoing war on Ukraine.

"The ban of exports for nations adhering to Russian price caps adds fuel to the anxieties around supply," said Hargreaves Lansdown analyst Sophie Lund-Yates. "This comes at the same time as China plans to reopen, which means oil demand is set to surge. While supply and demand dynamics continue to compete in this way, the oil price will remain elevated."