ADR Report-European banks lead foreign shares higher

NEW YORK, March 12 (Reuters) - Overseas shares traded in the United States were slightly higher on Friday, led by gains in European stocks.

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR was up 0.3 percent while European ADRs .BKEUR gained 0.5 percent.

In Europe, shares ended at their highest level in more than seven weeks as positive retail sales data boosted sentiment, while banks rose as U.S. Senate negotiations to overhaul financial regulation collapsed.

The FTSEurofirst 300 .FTEU3 index of top European shares ended 0.3 percent higher at 1,058.97 points, the highest closing since Jan. 19. The index rose 0.8 percent this week and is up 64 percent since hitting a record low in March last year.

Financial stocks were among the top gainers, with the STOXX Europe 600 banking sector index .SX7P rising 0.8 percent.

In the U.S., New York-listed shares of Barclays (BCS.N) gained 1.8 percent to $21.30 and Deutsche Bank AG (DB.N) rose 0.8 percent to $72.15. Lloyds (LYG.N) also gained 2.9 percent to $3.55.

U.S. stocks stayed steady as data showing retail sales rose unexpectedly last month was offset by weaker consumer sentiment, sending mixed signals about the economic outlook.

The Bank of New York Mellon index of leading Asian ADRs .BKAS was down 0.1 percent. In Asia, China stocks fell to three-week low on concern over an increase in bank reserve ratios. Hong Kong shares also edged lower after five consecutive sessions in positive territory as HSBC and Chinese banks weighed.

U.S.-listed shares of HSBC (HBC.N) fell 1.5 percent to $51.82.

Receipts with the Bank of New York Mellon index of leading Latin American ADRs .BKLA dipped 0.2 percent.

(Reporting by Angela Moon, Editing by Chizu Nomiyama)