UPDATE 2-UK stocks clock best day in nearly 3-weeks on stimulus hopes

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* Homebuilders gain on report of stamp duty cuts
* UK construction rebounds from lockdown in June -PMI
* Investors bet on China-led economic rebound
* FTSE 100 up 2.1%, FTSE 250 up 1.4%

(Updates prices to close, adds comments)
By Shreyashi Sanyal
July 6 (Reuters) - London stocks logged their best day in
nearly three weeks on Monday, with cyclical stocks including
banks leading advances on hopes of more stimulus to kickstart a
battered global economy, while homebuilders jumped on a report
of stamp duty cuts.
Persimmon PSN.L , Barratt Developments BDEV.L and Taylor
Wimpey TW.L gained as a report said finance minister Rishi
Sunak planned to raise the property tax threshold to as high as
500,000 pounds ($623,700) in an attempt to exempt most
homebuyers from paying any stamp duty. Barratt also reported a higher order book value and said it
was starting the new financial year with "cautious optimism".
"Cuts to VAT rates are perhaps the most straightforward way
to increase demand and would provide a much-needed lifeline to
the UK high street," said Tom Selby, senior analyst at AJ Bell.
The FTSE 100 .FTSE was up 2.1% and the mid-cap FTSE 250
.FTMC 1.4%, also supported by bets the Chinese economy would
boost global growth. .SS
Asia-focused lender HSBC HSBA.L jumped 6.6%, leading gains
among banks, while construction stocks .FTNMX2350 gained 1.7%
as a survey showed growth returned to construction companies in
June for the first time since the coronavirus lockdown began.
The FTSE 100 has rebounded more than 25% from a virus-driven
crash in March, aided by historic global stimulus and improving
economic data.
Prime Minister Boris Johnson has said he would set out a
timetable this week for when the remaining sectors of the
British economy would be allowed to reopen.
Insurer Aviva AV.L gained 3.6% as it said Maurice Tulloch
was stepping down with immediate effect for family health
reasons and named independent director and former Zurich
Insurance executive Amanda Blanc as his replacement.
Online fashion retailer Boohoo BOOH.L tumbled 23% after a
media report highlighted working conditions in one English
factory.