UK stocks advance on boost from precious metal miners, defence stocks

• FTSE 100 up 0.2%, FTSE 250 gains 0.1%
• UK defence stocks up as Norway picks Britain for frigate deal
• Kainos jumps on upbeat annual outlook
• Domino's Pizza rises on new share buyback, reaffirmed forecast

Sept 1 (Reuters) - London equities edged higher on Monday, with precious metal miners and defence stocks leading gains, while some positive corporate updates boosted sentiment.

The blue-chip FTSE 100 .FTSE advanced 0.2% by 1014 GMT, following its biggest weekly decline in almost five months on Friday. The domestically focussed midcap index .FTMC rose 0.1%.

Defence stocks .FTNMX502010 were among top sectoral performers after Norway said it had chosen Britain as its strategic partner for the acquisition of new frigates, in a deal worth some 10 billion pounds ($13.51 billion).

BAE Systems BAES.L rose 1.9%, Babcock BAB.L advanced 3.2%, while Rolls-Royce RR.L gained 1.9%.

Precious metal mining stocks .FTNMX551030 rose 2.9%, tracking gold prices that hit a more than four-month high. Hochschild Mining HOCM.L rose 5.9%, Fresnillo FRES.L and Endeavour Mining EDV.L added 2% and 3.1%, respectively. GOL/

The FTSE 100 hit a record high in August, as global shares rallied on rising bets on a U.S. rate cut in September, but ended the month on a turbulent note, registering four straight sessions of declines.

Heavyweight banking stocks .FTNMX301010, which fell on Friday after a think-tank recommended a new tax on lenders as a possible way for finance minister Rachel Reeves to raise revenue, steadied on the day with NatWest NWG.L, Lloyds LLOY.L and Barclays BARC.L trading higher.

On the flip side, personal goods .FTNMX402040 led sectoral declines with Burberry BRBY.L down 1.2%.

Among corporate updates, IT software developer Kainos KNOS.L jumped 19.7%, to top the mid-cap index, on an upbeat annual outlook.

Domino's Pizza Group DOM.L rose 7.5% on reaffirming its annual earnings forecast and launching a new share buyback.

A survey showed Britain's manufacturers suffered a fresh setback in August with new orders dropping due to worries about trade tensions abroad and tax increases at home.

Meanwhile, a U.S. appeals court ruled on Friday that most of U.S. President Donald Trump's tariffs are illegal, although it allowed them to remain in place until mid-October to permit further appeals.

Trump has vowed to take the case to the Supreme Court and trade experts say the administration is preparing alternative plans to be able to proceed with its tariffs.

Trading is expected to be light throughout the day due to a U.S. holiday.