*

STOXX 600 up 1.2%

*

H&M down after it can't meet reach its FY earnings margin

goal

*

Swiss National Bank cuts rate by 25 bps

(Updated at 0815 GMT)

By Pranav Kashyap

Sept 26 (Reuters) - European shares jumped on Thursday,

buoyed by optimism over fresh stimulus measures from China,

while investors awaited remarks from the European Central Bank

president.

The pan-European STOXX 600 index jumped 1.2% to

525.44, just shy of its record high of 526.66.

Chinese leaders pledged to deploy "necessary fiscal

spending" to meet this year's economic growth target of roughly

5%.

Chinese stocks soared, with the CSI300 blue-chip index

and Hong Kong's Hang Seng Index both surging over 4%.

"There's optimism that China could offer more stimulus in

future, and in that case we could see this rally sustain," said

Fiona Cincotta, senior market analyst at City Index.

Luxury stocks lifted the benchmark, with LVMH

, Hermes, Dior, Kering

and Burberry ( BBRYF ) rising between 5% and 7%.

European luxury firms rely heavily on Chinese consumer

spending.

China is also reportedly considering injecting up to 1

trillion yuan ($142.39 billion) of capital into its top banks to

increase their capacity in a bid to support its struggling

economy.

Europe's technology sector also added to the gains,

rising 3.1% as shares of European semiconductor companies jumped

after Micron Technology ( MU ) forecast higher-than-expected

revenue on AI demand.

A nearly 4% rise in the basic resources sector also

supported, as copper prices rose.

Bucking the trend, oil stocks were the biggest drag,

losing 2.4% as oil prices fell on news of top exporter Saudi

Arabia giving up its crude oil price target.

Investors awaited remarks from several ECB board members set

to speak later in the day, with President Christine Lagarde's

comments, scheduled for 1330 GMT, taking the spotlight.

"The market focus will be on comments that could be related

to the growth outlook for the region particularly after the

disappointing PMI data. A deteriorating outlook could put a

dampener on sentiment," Cincotta added.

The Swiss National Bank cut interest rates by 25 basis

points, marking its third such reduction this year. The Swiss

benchmark SMI gained 0.6%.

H&M dropped 4.1% after the world's second-largest

listed fashion retailer said it no longer expected to reach its

full-year earnings margin goal, while reporting a

lower-than-expected operating profit for the third quarter.

Across the pond, a series of speeches by officials of the

Federal Reserve are due, with remarks from Chair Jerome Powell

taking centre-stage.

City Index's Cincotta said the U.S. jobless claims data due

later in the day has the potential to move the market if there

are any surprises.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Sonia

Cheema and Mrigank Dhaniwala)