The FTSE 100 Index closed 39 points up at 4403.9 after China unveiled a plan to boost its economy.

Traders hope the £374.6 billion package of spending, subsidies and tax cuts will help stave off a global slowdown, and the gains in Asian markets sent the London index 4 per cent higher at one point before a late dip.

Several mining stocks were registering double-digit gains as investors took heart amid hopes of increased oil and metals demand from the Chinese stimulus.

Anglo American led out the blue-chip index, up almost 12 per cent or 156p to 1506p. The stock was closely followed by Xstrata, up 123p to 1191p.

BP and Royal Dutch Shell finished 4.75p better at 519.75p and 4p down at 1689p respectively after a volatile session in which oil fell to less than $61 a barrel.

British Airways was up more than 7 per cent or 11p to 157p, as analysts upgraded their forecasts after the company's well-received half-year results on Friday.

HBOS rose 3.5p to 107.75p after the former heads of Royal Bank of Scotland and Bank of Scotland announced their interest in creating an alternative to the current Lloyds TSB takeover. Reported interest from the Bank of China also helped the stock.

The leading FTSE faller was supermarket giant Tesco as sales in its key South Korean market struggled. Shares fell 20.2p to 323p, or 6 per cent.

Winners: Anglo American up 156p at 1506p, Xstrata ahead 123p at 1191p, BHP Billiton up 108p at 1123p and London Stock Exchange ahead 61.5p at 664p.

Losers: Tesco down 20.2p at 323p, Standard Chartered off 44.5p at 895.5p, Royal Bank of Scotland down 3p at 61p and Next, which finished 46p off at 1120p.

© Independent Television News Limited 2009. All rights reserved.