* FTSE 100 up 0.8 pct
* News of fresh U.S.-China talks boosts stocks, minersrecover
* Subdued pound supports dollar-earners
* Kingfisher falls after Q2 trading update(Adds closing prices)
By Kit Rees
LONDON, Aug 16 (Reuters) - The UK's top share index edgedhigher on Thursday, led by a strong rise in beaten-down miningstocks as news of fresh U.S.-China trade talks lifted sentimentacross markets and sectors.
The blue chip FTSE 100 closed up 0.8 percent at7,556.38 points while mid caps rose 0.7 percent.
Anxiety over a currency crisis in Turkey has rattled marketsover the past week, though positive developments in theU.S.-China trade dispute calmed nerves on Thursday with broaderEuropean markets also ending the day in positive territory.
China's commerce ministry said a fresh round of trade talkswill be held with the U.S. in August, boosting base metalsprices and in turn lifting shares in heavyweight UK miners.
"Investors will be very relieved there isn't a continuationof yesterday's market slump," Russ Mould, investment director atAJ Bell, said.
Shares in Antofagasta, Glencore, Fresnillo, Rio Tinto and BHP Billiton all rosebetween 0.9 and 2.5 percent.
The FTSE 350 mining index bounced back 1.3percent, having dropped almost 5 percent in the previous sessionto a four-month low.
Big, dollar-earning consumer staples stocks also gave aboost to the index as sterling traded close to 2018 lows, thoughthe currency was modestly higher on the day. Shares in BritishAmerican Tobacco, Imperial Brands and Unileverwere all strongly in positive territory.
Oil majors and FTSE heavyweights BP and Royal DutchShell also added points to the index, rising 0.6percent and 1 percent respectively.
Elsewhere it was a heavy day for stocks trading ex-dividend,with Evraz, Legal & General and Lloydsamong the biggest fallers.
Shares in Kingfisher were down 4.8 percent afterEurope's second-largest home improvement retailer said salesrose thanks to prolonged warm weather, but a weak performance atFrench business Castorama clouded its outlook.
"The longer-term picture for Kingfisher is tough, with aslowing housing market and few (home) movers affecting sales atits stores," Ed Monk, associate director at Fidelity PersonalInvesting's share dealing service, said.
Results were also in focus among mid-cap stocks. Shares inonline travel agent On The Beach jumped more than 15percent after a trading update, while a half-year earningsreport helped Kaz Minerals shares gain 2.3 percent.(Reporting by Kit ReesEditing by David Holmes and Jan Harvey)