* FTSE 100 up 3.1%, FTSE 250 up 2.9%
* Hedge fund Pershing Square top gainer among midcaps (Adds comments, details; updates prices)
March 10 (Reuters) - London's FTSE 100 bounced back on Tuesday from its worst session since the 2008 financial crisis, as investors bet on co-ordinated stimulus measures by major central banks to shield the global economy from the impact of the coronavirus epidemic.
The commodity-heavy FTSE 100 was up 3.1%, after falling to its lowest level since 2016 on Monday following a crash in oil prices with the launch of a price war between Saudi Arabia and Russia.
Prices of the commodity regained some of their losses on Tuesday, boosting shares of oil and gas and mining companies. BP Plc and Royal Dutch Shell Plc gained between 4% and 7% after closing Monday with their worst session on record.
"The market seems to be in sort of a holding pattern having had the big sell-off," said Keith Temperton, a trader at Tavira Securities. "We're looking for government responses and central bank responses to try and ease the burden on financial markets."
Fears of a global recession pounded global equity markets on Monday, with the Dow Jones Industrials Average losing a record 2,000 points at one point. But sentiment brightened in early Asia trade on growing hopes of a second interest rate cut this month by the U.S. Federal Reserve.
Reuters also reported that the Japanese government was gearing up to spend $4.1 billion more to counter the impact of the virus, which has crushed supply chains and dented business sentiment.
A survey showed the health crisis reversed a recent upturn in business optimism in Britain, with confidence falling to a six-month low.
Investor attention now turns to a budget speech by Finance Minister Rishi Sunak on Wednesday as they wait for clues on additional stimulus.
In company news, billionaire investor William Ackman's hedge fund Pershing square jumped 14.5% after his letter to shareholders said various hedges "more than compensated" for recent market declines that hit portfolio companies.
Ultra Electronics rose 12.1% and was on course for its biggest intraday gain in a year after the engineering firm said the epidemic had not impacted its business.
Informa, the world's largest exhibitions group jumped 5.17% after it reported upbeat annual revenue and profit. (Reporting by Shivani Kumaresan and Devik Jain in Bengaluru; Editing by Anil D'Silva)