UPDATE 2-New Brexit deal, Huawei reprieve boost FTSE 100

* FTSE 100 up 0.3%, FTSE 250 up 0.5%
* Housebuilders, Asia-focused financial stocks gain
* Lloyds, Barclays rise as Tesco exits mortgage lending
* UDG, Electrocomponents up after strong earnings
* Builder Galliford jumps after job cuts

(Adds company news items, updates to closing prices)
By Muvija M and Shashwat Awasthi
May 21 (Reuters) - The FTSE rose on Tuesday, helped by a
rally in homebuilders amid news of a proposed parliamentary vote
on a second Brexit referendum and gains in Asia-facing stocks
after the United States relaxed restrictions on China's Huawei.
The FTSE 100 .FTSE was up 0.3%, while the FTSE 250 .FTMC
rose 0.5%, with builder Galliford Try leading gains after
announcing job cuts.
After weeks of waiting for significant updates on Brexit,
investors welcomed a "new deal" for Britain's departure from the
European Union set out by Prime Minister Theresa May, which
offered the prospect of a possible second referendum on the
agreement.
That thrust housebuilders .FTNMX3720 1.2% higher, their
biggest one-day rise in a month. Persimmon PSN.L and Taylor
Wimpey TW.L were among top gainers on the main index.
Heavyweights HSBC HSBA.L , Prudential PRU.L and Standard
Chartered STAN.L also offered support as markets hoped that
trade tensions between Washington and Beijing would ease after
the United States eased restrictions on telecom giant Huawei.
"While it's a small measure, it does perhaps symbolise that
there might be a reverse gear from the current slide to what
could well turn into a full-blown trade war," CMC Markets
analyst Michael Hewson said.
Shares of Lloyds LLOY.L and Barclays BARC.L gained as
Tesco's TSCO.L decision to stop mortgage lending raised the
prospect of reduced pressure on margins, due to lesser
competition. Keeping a lid on gains were exporter stocks that weakened as
sterling strengthened after May's latest proposals. On the FTSE 250, Galliford Try GFRD.L jumped 15.3% on its
best day in over a decade after the company said it would cut up
to 350 jobs as its construction business focuses on its core
strengths, bringing hopes of improved margins. Galliford's update "should be taken well because there are
no further incremental contract issues, and because part of the
exceptional cost identified in April has a payback through
future cost reduction," Liberum analysts said.
Britain's largest industrial distribution firm
Electrocomponents ECM.L rose 7.8% to a seven-month high after
reporting profit ahead of market expectations.
UDG Healthcare UDG.L scaled a more than eight-month high
with a 6.8% rise, after the company raised its 2019 adjusted
profit forecast. Metro Bank MTRO.L , which has seen its shares hammered
after disclosing an accounting error, advanced 7.5%. The
lender's annual meeting results showed it had escaped a
threatened major investor challenge on Tuesday, though there
were sizeable votes against several of its top directors.
Keeping a lid on gains among midcaps was Entertainment One
ETO.L , the maker of children's TV show Peppa Pig, that slumped
11% after missing estimates for revenue as well as Royal Mail
RMG.L , which slipped 9.2% ahead of earnings report.