Nov. 10 (Bloomberg) -- U.K. stocks rose for a second day, led by mining companies, after China unveiled a $586 billion plan to stimulate the world's biggest contributor to economic growth and metals prices rallied.

BHP Billiton Ltd., the world's largest mining company, and Rio Tinto Group led the advance. British Airways Plc jumped more than 9 percent after Royal Bank of Scotland Group Plc recommended investors buy shares in Europe's third-biggest carrier.

The FTSE 100 Index added 38.96, or 0.9 percent, to 4,403.92 in London. The FTSE All-Share Index and Ireland's ISEQ Index rose 5.1 percent.

China, the world's fourth-largest economy, joined governments and central banks from Washington and Tokyo to Frankfurt and London by lowering borrowing costs and injecting cash to avert recession and unlock credit markets.

``This is a strong sign from Chinese authorities that they are dedicated to promoting growth,'' said Alan Borrows, who helps oversee 1.1 billion pounds at Midas Capital Partners in Liverpool, England. ``The clear beneficiaries are the mining companies as many investors had worried that the slowdown in the Chinese economy would be detrimental to their earnings prospects into 2009.''

BHP advanced 11 percent to 1,123 pence. Rio Tinto, the world's third-largest mining company, climbed 8.6 percent to 2,844 pence.

Copper Gains

Copper rose the most in more than a week in London. Nickel and aluminum also jumped.

BA jumped 7.5 percent to 157 pence after the shares were raised to ``buy'' from ``sell' at RBS.

``We have greater optimism than most regarding BA's key strategic moves relating to antitrust immunity'' with American Airlines Inc. and the planned merger with Iberia Lineas Aereas de Espana SA, analysts Andrew Lobbenberg and Christian Cowley wrote in a research note dated today.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. companies:

AstraZeneca Plc (AZN LN) gained 86 pence, or 3.2 percent, to 2,770. The drugmaker's Crestor slashed the risk of heart attack, stroke and death by nearly half in people with normal or low cholesterol in a study, potentially opening a way to save the lives of thousands of seemingly healthy people.

Blinkx Plc (BLNX LN) increased 0.25 pence, or 1.4 percent, to 18 pence. The video-search operator spun off by Autonomy Corp. may boost the volume of searches it runs by at least 20 percent as it increases content, Chief Executive Officer Suranga Chandratillake said.

Cable & Wireless Plc (CW/ LN) added 7.3 pence, or 5.4 percent, to 142. The U.K.'s second-biggest phone company raised the full-year forecast for operating profit as the company's international business had ``one of its best results in a long time.''

Dairy Crest Plc (DCG LN) slumped 86.5 pence, or 26 percent, to 243.5. The U.K.'s biggest milk and cheese producer fell the most in London trading since going public in 1996 after forecasting lower profit as shoppers opt for cheaper foods and costs rise.

HSBC Holdings Plc (HSBA LN) slid 11 pence, or 1.5 percent, to 735.5. Europe's biggest bank said it set aside a more-than-estimated $4.3 billion to cover bad loans in the U.S. and forecast ``further deterioration.''

JKX Oil & Gas Plc (JKX LN) increased 10.75 pence, or 5.9 percent, to 194.5. The U.K. energy exploration company connected its gas production in Ukraine to the Soyuz pipeline, removing constraints on supplies.

Kier Group Plc (KIE LN) added 39.5 pence, or 5.6 percent, to 745. The U.K. company that helped build the Channel Tunnel said its financial performance to date is meeting company targets.

Majestic Wine Plc (MJW LN) lost 10.25 pence, or 6.9 percent, to 137.75. The owner of the U.K.'s largest chain of wine warehouses said Christmas sales will be ``challenging'' after a drop in same-store revenue more than doubled at the start of its second half.

Medsea Estates Group Plc (MEA LN) soared 0.45 pence, or 300 percent, to 0.6 pence. The British real-estate company that sells homes in southern Europe to northern Europeans said it is considering various approaches.

Tesco Plc (TSCO LN) decreased 20.2 pence, or 5.9 percent, to 323. Britain's largest retailer reported deteriorating sales in China and South Korea, prompting the shares' biggest drop in almost a month.

TUI Travel Plc (TT/ LN) gained 1.1 euros, or 0.6 percent, to 197.2. Europe's largest tour operator will prepare for a slowing economy by scaling down its capacity in Germany and raising prices, Reuters reported.

Irish companies:

DCC Plc (DCC ID) added 34 cents, or 2.7 percent, to 12.8 euros. The Irish distributor of goods from computer games to fuel reported a first-half profit without year- earlier costs for a legal battle with fruit distributor Fyffes Plc.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.

Last Updated: November 10, 2008 12:13 EST