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* FTSE 100 index closes 0.2 percent higher
* Cyclical shares gain on solid economic data
* Upbeat house price data helps housebuilders
By Atul Prakash
LONDON, July 2 (Reuters) - Britain's top share index hit aone-week high on Wednesday, with upbeat economic data from theUnited States and China improving investor sentiment andboosting cyclical sectors like banks, miners and automakers.
The blue-chip FTSE 100 index closed 0.2 percentfirmer at 6,816.37 points after climbing to a high of 6,829.49,the highest level since late June. The index is up more than 5percent so far this year.
Cyclical shares were in demand following the release of datashowing U.S. private payrolls recorded their largest gain in1-1/2 years in June as businesses stepped up hiring, reinforcingviews the economy has rebounded from its first-quarter slump.
"These solid economic numbers raise expectations that thesecond quarter U.S. growth figures would be good," said KeithBowman, equity analyst at Hargreaves Lansdown.
"This is a good environment for cyclical companies as apickup in business activity in the world's largest economy hasthe potential to increase demand for cyclical shares."
The U.S. private jobs data came a day after figures showedthat factory activity in China, the world's biggest metalsconsumer, hit multi-month highs in June.
The UK mining index rose a further 0.8 percenton Wednesday, extending the previous session's 2.9 percentrally, while the banking index gained 0.7 percent.
"(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,"CMC Markets senior analyst Michael Hewson said.
Among the miners, Rio Tinto and BHP Billiton advanced 1.2 percent and 0.7 percent respectively. Minersaccount for about 10 percent of the FTSE 100 index.
Some strength was seen in housebuilders after figures frommortgage lender Nationwide showing British house prices rose attheir fastest annual pace in more than nine years last month.
Blue-chip Barratt Developments rose 0.1 percent,while among mid-caps, Bovis Homes and Taylor Wimpey advanced 0.9 percent and 1.4 percent respectively.
The sector has been rattled in the past weeks by risingexpectations of a Bank of England rate hike before the end ofthe year, but analysts and traders view any such weakness as abuying opportunity.
"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." (Additional reporting by Tricia Wright; Editing by CatherineEvans)
