* FTSE 100 up 0.3 pct
* Miners extend China data induced gains
* Housebuilders buoyed by upbeat house price data
By Tricia Wright
LONDON, July 2 (Reuters) - British shares rose on Wednesday,taking their cue from overnight gains on Wall Street and inAsia, with mining stocks drawing continued support from recentupbeat data out of China, the world's top metals consumer.
Miners rose 0.9 percent, the best performingsector, extending gains from Tuesday when factory activity datafrom China reinforced signs of stabilisation in its economy.
"It's just a spillover from yesterday," Michael Hewson, CMCMarkets' senior analyst said.
"(Miners) have been some of the worst performers over thepast two or three years and they're just getting a little bitmore buying interest on the back of the fact that people thinkthat copper prices and commodity prices are going to edge up."
The FTSE 100 was up 21.12 points, or 0.3 percent, at6,824.04 points by 0815 GMT, having kicked off the third quarterwith aplomb - rising 0.9 percent to notch its biggest one-daypercentage gain in two months in the previous session.
In the United States, the Dow and the S&P 500 hit all-time highs on Tuesday, lifted by equally robust domesticmanufacturing data in addition to the strong China data. Asianstocks hit a three-year peak on Wednesday.
Miners account for 10 percent of the FTSE 100 index. Thesectoral FTSE 350 mining index ended the first half of the yearup by a meagre 0.5 percent, capped by a continued fall in theprice of metals such as iron ore and copper.
Copper accounted for 12 percent of Rio's and 22 percent ofBHP Billiton's revenues last year, with iron ore the largestrevenue source for both companies.
Some strength was seen from the housebuilders after figuresfrom mortgage lender Nationwide showing British house pricesrose at their fastest annual pace in more than nine years lastmonth.
Blue-chip Barratt Developments (LSE: BDEV.L - news) rose 1.1 percent,while among mid-caps, Bovis Homes (LSE: BVS.L - news) and Taylor Wimpey (LSE: TW.L - news) advanced 1.7 percent and 0.5 percent respectively.
The sector has been rattled in the past weeks on risingexpectations for a UK rate hike before the end of the year, butanalysts and traders view any such weakness as a buyingopportunity.
While higher rates would raise the costs of borrowing tobuild, it would also signal the economy, and consequentlyfunding prospects, were looking brighter. In any case, somebelieve that interest rates will not rise for some time yet.
"The sector got clobbered a bit in the sell-off on interestrate worries. I think our view was that that was probablyoverdone," Peel Hunt equity strategist Ian Williams said.
"I just don't see where the inflationary pressure is enoughin the next six months to put rates up in October/November; Istill think it's a much more likely story for next year." (Editing by Susan Fenton)
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