UPDATE 2-FTSE climbs after recording weekly loss

* FTSE 100 up 0.4%, FTSE 250 up 0.2%

* Stimulus measures from China lift sentiment

* NMC erases losses to end on a positive note
(Updates to closing prices)

By Muvija M

Feb 17 (Reuters) - London's FTSE 100 recovered from two
sessions of losses on Monday, as China's moves to counter the
economic impact of the coronavirus epidemic soothed some of the
nerves which have dominated the past fortnight's trading.

The FTSE 100 climbed 0.4%, with all but one sector
in positive territory, while the midcap index rose 0.2%.

NMC Health, which has been the target of a Muddy
Waters' short-selling attack since December, erased earlier
losses to end 3% higher after the hospital operator said its
founder B.R. Shetty has resigned as non-executive chairman.

The number of reported new cases of coronavirus in China's
Hubei province, the epicentre of the outbreak, fell for two
consecutive days before rising again on Monday.

China's central bank cut the interest rate on its medium
term loans on Monday as it seeks to safeguard the economy from
the impact of the virus, which has killed 1,770 people.

"These actions are likely to be followed up by lowering the
country's benchmark rate later this week, as they continue to
fight the spread of the coronavirus," FXTM analyst Hussein Sayed
said.

The UK bluechip index, which has a larger exposure to
commodity prices due to its heavyweight miners and oil majors,
ended the last week in the red, while its European counterpart
notched up a third week of gains.

Commodity prices have been pressured recently as the
outbreak gave way to concerns of a slowdown in demand.

Petra Diamonds tumbled 16% on its worst day since
July after a warning that the coronavirus outbreak had hurt
demand in the market as stores were forced to shut during the
important Lunar New Year period in China.

Among midcaps, Tullow Oil fell 3% after the company
said it would plug a Peruvian well after no oil was found.

Jupiter Fund Management added 4% on the same index,
touching a 1-1/2-year high, after it agreed to buy Merian Global
Investors in a deal that will make it Britain's second-largest
retail funds provider.

Among smaller companies and in the latest retail sector
casualty, Laura Ashley lost nearly half its market value
after its statement raised concerns of its cash status. It said
its main banking lender and majority shareholder were in talks
regarding the company's immediate funding needs.
(Reporting by Muvija M in Bengaluru; Editing by Patrick Graham,
Shounak Dasgupta and Andrew Heavens)