UPDATE 2-UK stocks end higher as recovery hope offsets grim jobless data

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Travel and leisure stocks jump on lockdown exit plan
* Unemployment rate edges up to 5.1%
* FTSE 100 up 0.2%, FTSE 250 adds 0.4%

(Updates to market close)
By Shivani Kumaresan and Amal S
Feb 23 (Reuters) - UK stocks closed higher on Tuesday,
bucking the trend in Europe as optimism around an economic
recovery led by plans to ease restrictions in Britain offset a
spike in the domestic unemployment rate.
After falling as much 1.7%, the commodity-heavy FTSE 100
.FTSE ended 0.2% higher after British Prime Minister Boris
Johnson said he was very optimistic that all COVID-19
restrictions in England would end on June 21. The mid-cap FTSE 250 .FTMC gained 0.4%.
"The announcement has given market an extra confidence that
the economy will be starting to move back into normalcy
progressively over the next few months and shares of travel
companies and banks are benefiting from that," said Chris
Bailey, strategist at Raymond James.
British Airways owner IAG ICAG.L gained 2.0%, while
easyJet EZJ.L , Wizz Air WIZZ.L and Cineworld CINE.L gained
between 1.8% and 9.5%.
Summer holiday bookings surged by as much as 600% after
Britain laid out plans to gradually relax coronavirus
restrictions. HSBC Holdings Plc HSBA.L edged up 0.8%, alongside other
banking stocks, despite lowering its long-term profitability
target. Barclays BARC.L and Lloyds Banking Group LLOY.L rose
3.1% and 2% respectively.
A raft of global stimulus has helped the FTSE 100 recover
about 35% from a coronavirus-driven crash last year, but it has
lagged its European peer on worries about the economic damage
from prolonged lockdowns. More recently, fears of rising
inflation have hit equities worldwide.
Britain's jobless rate rose to 5.1% in the last three months
of 2020, its highest in nearly five years but still lower than
it would have been without a huge coronavirus jobs support
scheme that finance minister Rishi Sunak looks set to extend
next week.