Sept. 26 (Bloomberg) -- German stocks advanced as German business confidence fell less than expected in September. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped for a third straight month to 107.5 from 108.7 in August, less than a median forecast of a drop to 106.5.

The benchmark DAX Index rose 1.3 percent to 5,262.75 as of 10:03 a.m. in Frankfurt, reversing earlier declines of as much 1.5 percent.

To contact the editor responsible for this story: Julie Cruz at jcruz6@bloomberg.net