FTSE up 2.9 pct early on Chinese stimulus package

* FTSE 100 up 2.9 pct

* Soaring commodity prices lift energy, mining stocks

* Stocks broadly higher as Chinese stimulus package supports

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By Simon Falush

LONDON, NOV 10 (Reuters) - Britain's top share index climbed 2.9 percent early on Monday, as a near-$600 billion economic stimulus package from China slightly brightened a gloomy demand outlook and lifted energy and mining stocks.

By 0853 GMT the FTSE 100 .FTSE was up 126.59 points at 4,491.55 having closed up 2.2 percent on Friday.

Beijing announced plans on Sunday to re-engineer growth, shifting the economy's focus away from struggling export markets to the domestic economy, promising to spend 4 trillion yuan ($586 billion) on infrastructure and social services.

The stimulus package helped boost commodity prices, lifting energy and mining stocks.

Lonmin (LMI.L) gained 10.4 percent, Anglo American (AAL.L) climbed 11.3 percent and Xstrata (XTA.L) surged 14 percent while BHP Billiton (BLT.L) added 12.1 percent.

"The main driver has been the Chinese stimulus package as there has been a lot of concern that the global recession would be worsened by slowing Chinese GDP growth," said Richard Hunter, head of UK equities at Hargreaves Lansdown.

"(The stimulus package) is having an impact on mining stocks on the demand story, but stocks are up pretty much across the board."

Royal Dutch Shell (RDSa.L), BP (BP.L) and Cairn Energy (CNE.L) gained between 3.6 and 6.4 percent.

The Chinese news helped shift attention away from jobs data that showed small and medium-sized manufacturers in Britain have cut staff for the first time in 18 months and more than a quarter plan to reduce headcount further.

The Daily Telegraph said middle-income families and small businesses will receive billions of pounds of tax cuts and benefits in the Pre-Budget report within the next two weeks.