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* FTSE 100 up 0.5 pct
* FTSE 250 up 0.2 pct
* U.S.-China trade hopes help miners gain
* TUI plunges after profit warning
* AstraZeneca down after cancer drug tie-up
* Burberry rises after rival H&M's results
March 29 (Reuters) - Britain's FTSE 100 thrived as hopes of progress in the latest round of Sino-U.S. trade talks ignited optimism, while tour operator TUI tumbled after a profit warning and AstraZeneca weakened after a $6.9 billion cancer drug tie-up.
The FTSE 100 added 0.5 percent, putting it on course for its third straight month of gains and its first quarterly rise since June 2018.
The domestically focused FTSE 250 rose 0.2 percent by 0928 GMT and was set for its best quarter since September 2016, despite a lackluster March as Brexit concerns mounted.
Optimism surrounding trade talks between China and the United States, to be kicked off on Friday, buoyed miners . Asia-exposed financial heavyweights HSBC and Prudential also rose.
Sentiment was aided by comments from U.S. Treasury Secretary Steven Mnuchin that he and U.S. Trade Representative Robert Lighthizer had concluded "constructive" trade talks in Beijing.
Oil majors also gained as crude prices rose and were set for their biggest quarterly rise since 2009.
But London-listed shares of TUI slumped 7.6 percent to the bottom of the main bourse and hit a record low after the German tour operator issued a profit warning due to grounding of Boeing's 737 MAX aircraft in the wake of two deadly crashes of the model.
AstraZeneca slipped 4.7 percent and was on course for its worst day since July 2017 after a cancer drug deal with Daiichi Sankyo that would have the British drugmaker pay as much as $6.9 billion to its Japanese partner.
Luxury brand Burberry inched 1.8 percent higher after Swedish rival H&M's first-quarter pretax profit fell less than expected and it saw an improvement in margins.
At home, lawmakers were set to vote on Prime Minister Theresa May's withdrawal agreement at a special sitting - but not on the framework for future relations with the EU she negotiated at the same time. Britain was originally scheduled to leave the EU on Friday.
"With the options narrowing it is becoming ever more obvious that the nature of any outcome remains binary with either a no deal outcome, or a revocation of Article 50 the only options in the hands of the UK parliament," CMC Markets analyst Michael Hewson said.
Meanwhile, data showed that Britain's balance of payments shortfall got bigger in the last few months of 2018, hurt in part by a disappointing trade performance as the world economy slowed and Brexit neared.
Mid-cap independent alternative investment manager Man Group advanced 3.7 percent after Credit Suisse initiated coverage with an "outperform" rating, while speciality chemicals maker Victrex gave up 4 percent after Barclays cut price target. (Reporting by Shashwat Awasthi and Yadarisa Shabong in Bengaluru; Editing by Alison Williams)