UPDATE 2-UK stocks end higher as economic recovery hopes build

* Automobile, construction stocks lead gains
* Grocery sales post sharp rise as Britons adapt to lockdown
* Asset manager St James 's Place posts higher April net
inflows
* FTSE 100 posts strongest close since March 6

(Adds details, updates to close)
By Sagarika Jaisinghani and Ambar Warrick
May 27 (Reuters) - London-listed stocks notched up their
strongest close since early March on Wednesday amid sustained
hopes of an economic recovery from the coronavirus pandemic,
even as unrest in Hong Kong cast some doubt over Sino-U.S.
relations.
The blue-chip FTSE 100 .FTSE added 1.3%, while the
domestically focussed FTSE 250 .FTMC rose 1.2% in anticipation
of thousands of retailers emerging from lockdowns next month,
while reports of a bigger-than-expected euro zone stimulus
package also helped sentiment.
"Society has quickly become accustomed to social distancing
measures. This shift in behaviour sends a positive signal to
markets as it helps to remove layers of uncertainty which have
been hanging over share prices," said Russ Mould, investment
director at AJ Bell.
London's blue-chip and mid-cap indexes have risen about 25%
and 38%, respectively, from multi-year lows in March as traders
bet on a faster revival in supply chains and consumer demand to
pull out of what is expected to be the worst UK recession in 300
years. Data on Wednesday showed UK grocery sales rose 14.3% during
the 12 weeks through May 17, the fastest rate since comparable
records began in 1994. Travel-related stocks .FTNMX5750 surged again to advance
10% in just two days as Germany and Spain started to ease travel
restrictions.
Asset manager St James's Place SJP.L rose 8.3% and was
among the biggest gainers on the FTSE 100 after reporting a 1%
gain in April net inflows. British Land Co Plc BLND.L jumped 7.4% even as the real
estate firm racked up a 1.1 billion pound ($1.4 billion) loss in
its year ended March 31. Still, investors remained cautious as U.S. President Donald
Trump said he was preparing to take action against China over
its move to impose a security bill in Hong Kong, potentially
reigniting trade tensions between the world's largest economies.