April 26, 2017 / 5:03 PM / a year ago

CORRECTED-French stocks hit 9-year high as earnings power European shares

(Corrects headline to 9-year high (not 9-month high))

* STOXX 600 up 0.5 pct at close

* CAC 40 hits 9-year high, Kering rises after results

* Bic sinks 10 pct on results miss

* European Q1 earnings seen +5.5%, revenues +5.7%

By Kit Rees and Helen Reid

LONDON, April 26 (Reuters) - French blue chips hit a fresh 9-year high on Wednesday, helped by a surge in the shares of luxury group Kering after it reported strong sales, while European regional indexes hovered near a 20-month peak.

The pan-European STOXX 600 benchmark ended the session up 0.5 percent as luxury stocks and financials underpinned gains, supported by a wave of earnings results that largely outperformed market expectations.

France’s CAC 40 rose 0.2 percent, building on gains made earlier this week after the investor-friendly centrist Emmanuel Macron progressed to the second round of the French presidential election on May 7. He is tipped to win.

“We have had 25 percent of companies reporting, and a majority of those have beaten estimates,” said Emmanuel Cau, global equity strategist at JP Morgan.

“Pretty much every single (piece of) eurozone data ... has surprised to the upside, and this is driving upgrades.”

Kering was the top STOXX gainer, up nearly 10 percent and hitting an all-time high after surprisingly strong first quarter sales at Gucci and Yves Saint Laurent helped the company beat market forecasts.

“The (Gucci) brand has seen a significant acceleration in performance since the new creative director Alessandro Michele took over with his new collections, which are quite differentiated from the previous collections and from other luxury houses,” said Matt Siddle, portfolio manager, Fidelity Funds European Growth.

“They appear to be hitting the zeitgeist at the moment.”

Other luxury names across Europe rose on Kering’s momentum, with Moncler and Salvatore Ferragamo among top gainers on Italy’s blue chip index, and LVMH notching up another record high, up 0.8 percent.

Shares in carmaker Fiat Chrysler soared more than 9 percent after reporting an 11 percent rise in first-quarter operating profit.

Fallers were led by Bic, which plunged more than 10 percent to a more than two-year low, after its first-quarter net income and sales fell on weak U.S. demand.

French software solutions company Dassault Systemes fell nearly 6 percent, marking its worst day in six months after it announced single-digit growth in new licenses in its first quarter.

Analysts at Baader Helvea said this disappointed after double-digit growth in new licenses drove the shares higher at the end of 2016.

Credit Suisse, which kicked off much-anticipated results for European banks with plans for a $4 billion cash call, rose 2.7 percent, outperforming the regional banking index .

Regional banks supported European gains after Standard Chartered also posted robust results with profit doubling in Q1.

Likewise a 2.3 percent rise in Deutsche Bank’s shares sent Germany’s DAX to a record high. The German lender is set to report first quarter numbers on Thursday.

Overall, first-quarter earnings for STOXX 600 companies were expected to rise 5.5 percent, according to Thomson Reuters I/B/E/S data. Revenues are expected to increase 5.7 percent.

That compares to the 11.4 percent earnings growth expected for top U.S. companies.

Reporting by Helen Reid and Kit Rees; Editing by Gareth Jones

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