UPDATE 2-FTSE 100 hits five-month high on China GDP and weak pound

* FTSE 100 rises 0.9%, FTSE 250 up 0.8%

* China GDP in line with expectations

* Weak UK retails sales bolster rate cut expectations

* NMC Health, IAG among top blue-chip gainers

* Among midcaps, motor insurer Hastings slides
(Adds news items, analyst comments, updates to closing prices)

By Shashwat Awasthi

Jan 17 (Reuters) - London's FTSE 100 rose to a more than
five-month high on Friday as China's economic growth met
expectations and the pound slid after weak British retail sales
raised the prospect of an imminent interest rate cut by the Bank
of England.

The exporter-heavy index surged 0.9%, boosted by
miners, as China's 2019 growth came in within
Beijing's target range and signalled an improvement in business
sentiment following a de-escalation of the trade war with the
United States.

"The Phase 1 (trade) deal has partially lifted the cloud of
uncertainty hanging over the economy," OANDA analyst Craig Erlam
said. "If these numbers are anything to go by, 2020 could be a
far more productive year for the world's second-largest
economy."

Companies that book most of their earnings in the U.S.
dollar such as AstraZeneca, GlaxoSmithKline and
Diageo also rose, helping the blue-chip bourse bag its
first weekly gain of the new decade.

British Airways-owner IAG climbed 5% to its highest
level since September 2018 after it lifted a restriction on
non-EU investors' ability to buy its stock.

NMC Health advanced 8% after an independent review
committee tapped a former FBI director to compile a report on
allegations by U.S. firm Muddy Waters.

The FTSE 250 rose 0.8%, as more domestically-exposed
stocks firmed amid the increasing likelihood that the BoE would
loosen policy after data showed consumers did not increase their
spending for the fifth straight month in December.

"Seeing as the December report includes the important
Christmas period, the sharp fall is particularly distressing,"
said CMC Markets analyst David Madden.

The rally in domestic stocks and food processing company
Cranswick, which jumped 9.4% to a record high after it
forecast annual profit above market expectations, helped the
midcaps to a 1.5% gain for the week.

But motor insurer Hastings slid 4% after it
forecast a slump in annual earnings and a lower dividend,
sending its shares to their lowest level since July 2016.

"A big challenge for the company is that motor insurance is
a very competitive market," said Russ Mould, investment director
at AJ Bell. "Until the motor insurance market turns, it could be
very difficult for Hastings to get out of first gear."
(Reporting by Shashwat Awasthi in Bengaluru; Editing by
Shailesh Kuber and Pravin Char)