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FTSE 100 up 0.2%, FTSE 250 gains 0.1%

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UK defence stocks up as Norway picks Britain for frigate

deal

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Kainos jumps on upbeat annual outlook

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Domino's Pizza rises on new share buyback, reaffirmed

forecast

Sept 1 (Reuters) - London equities edged higher on

Monday, with precious metal miners and defence stocks leading

gains, while some positive corporate updates boosted sentiment.

The blue-chip FTSE 100 advanced 0.2% by 1014 GMT,

following its biggest weekly decline in almost five months on

Friday. The domestically focussed midcap index rose

0.1%.

Defence stocks were among top sectoral

performers after Norway said it had chosen Britain as its

strategic partner for the acquisition of new frigates, in a deal

worth some 10 billion pounds ($13.51 billion).

BAE Systems rose 1.9%, Babcock advanced

3.2%, while Rolls-Royce gained 1.9%.

Precious metal mining stocks rose 2.9%,

tracking gold prices that hit a more than four-month high.

Hochschild Mining rose 5.9%, Fresnillo and

Endeavour Mining ( EDVMF ) added 2% and 3.1%, respectively.

The FTSE 100 hit a record high in August, as global shares

rallied on rising bets on a U.S. rate cut in September, but

ended the month on a turbulent note, registering four straight

sessions of declines.

Heavyweight banking stocks, which fell on

Friday after a think-tank recommended a new tax on lenders as a

possible way for finance minister Rachel Reeves to raise

revenue, steadied on the day with NatWest ( NWG ), Lloyds

and Barclays ( BCS ) trading higher.

On the flip side, personal goods led sectoral

declines with Burberry ( BBRYF ) down 1.2%.

Among corporate updates, IT software developer Kainos

jumped 19.7%, to top the mid-cap index, on an upbeat

annual outlook.

Domino's Pizza Group rose 7.5% on reaffirming its

annual earnings forecast and launching a new share buyback.

A survey showed Britain's manufacturers suffered a fresh

setback in August with new orders dropping due to worries about

trade tensions abroad and tax increases at home.

Meanwhile, a U.S. appeals court ruled on Friday that most of

U.S. President Donald Trump's tariffs are illegal, although it

allowed them to remain in place until mid-October to permit

further appeals.

Trump has vowed to take the case to the Supreme Court and

trade experts say the administration is preparing alternative

plans to be able to proceed with its tariffs.

Trading is expected to be light throughout the day due to a

U.S. holiday.

(Reporting by Sukriti Gupta; Editing by Mrigank Dhaniwala)