UPDATE 2-FTSE up for 3rd day on China stimulus hopes, Halma jump

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

* Halma top gainer on main index

* easyJet glides higher after FY report

* LED maker Dialight tanks after profit alert
(Adds news items, analyst comment, updates to closing prices)

By Muvija M and Shashwat Awasthi

Nov 19 (Reuters) - London's FTSE 100 shed most of its
earlier gains but still managed to close higher on Tuesday, as
sentiment was supported by a surge in safety equipment maker
Halma and hopes of more stimulus from economic powerhouse China.

Continuing optimism after polls showed Conservatives in the
lead ahead of a December snap election helped domestic stocks
outperform. The FTSE 250, which had jumped over 1%
earlier, ended with a 0.4% gain, still hovering at a 14-month
high.

Markets are viewing a prospective Tory victory as a positive
on hopes that Prime Minister Boris Johnson, with a majority in
parliament, will be able to reduce uncertainty by delivering
Brexit on or before the Jan. 31 deadline.

The blue-chip index added 0.2% thanks in part to
Halma, which climbed 8.5% after an upbeat half-year
report. Rival Intertek also advanced 3.7%.

Asia-focused banks HSBC and Prudential also
boosted the blue-chip bourse after China's surprise lending rate
cut spurred bets that more fiscal easing would follow.

On the Sino-U.S. trade front, a CNBC report on Monday termed
Beijing's mood about a deal as "pessimistic". This was followed
by Washington granting a 90-day extension allowing U.S. firms to
continue doing business with China's Huawei.

With a plethora of conflicting headlines on where talks
stand and how much progress has been made, traders are still
awaiting concrete details before making further bets.

"Traders have failed to get excited today as the trade spat
seems to have reached a standstill," CMC Markets analyst David
Madden wrote.

Among mid-caps, Puretech Health led gains as it
soared 16.5%, a day after a schizophrenia drug from its
affiliate Karuna Therapeutics met the main goal in
mid-stage trial.

That was complemented by a 5.3% rise in budget airline
easyJet after it posted annual profit toward the top end
of its expectations. The carrier also announced its intention to
operate net-zero carbon flights across its network.

"While headwinds from fuel are set to continue, the outlook
is for a more supportive unit revenue environment," Liberum
analysts wrote.

Though outsourcing firm Equiniti booked its worst
day on record after a profit warning and tumbled 13%, the FTSE
250 still handily outperformed the broader European benchmark
.

Small-cap lights manufacturer Dialight plunged
almost 20% to its lowest in nearly a decade as the ongoing
U.S.-China trade war forced it to warn on profits.
(Reporting by Muvija M and Safia Infant in Bengaluru; Editing
by Bernard Orr, Shailesh Kuber and Mark Heinrich)