* Stoxx 600 up 0.8 pct at close
* China eases foreign investment restrictions
* Euro rises on EU immigration deal, sentiment improves
* Galapagos plunges on drug trial results (Recasts, adds detail and updates prices at close)
By Julien Ponthus and Kit Rees
LONDON, June 29 (Reuters) - European shares ended a decent quarter with a bounce on Friday, enjoying a respite from trade war fears after China eased foreign investment limits.
The pan-European STOXX 600 was up 0.8 percent at its close, while Germany's trade-sensitive DAX jumped 1.1 percent.
The escalation of the United States' trade dispute with China and the European Union had taken its toll on European shares in June, with the index down 0.8 percent this month. However, that still left it with a 2.4 percent gain in the second quarter.
A deal struck by EU leaders on immigration in the early morning also help improved sentiment and triggered a jump in the euro.
"The migrant crisis in Europe threatened German Chancellor Angela Merkel’s fragile coalition, which was in danger of collapsing if she left the summit without a deal", commented Jasper Lawler, head of research at London Capital Group.
The tech sector, which was hard hit during the week as worries about global trade grew, also enjoyed a strong rebound with a 1.6 percent rise.
German lighting group Osram <OSRn.DE said> which plunged over 20 percent during the previous session after slashing its profit guidance, recouped some of its losses, rising 5.8 percent.
Banks were also on the rise. Spain's Caixabank gained 3.3 percent after announcing the sale of its real estate business.
Deutsche Bank rose about 1.8 percent despite failing a U.S. stress test.
"This was expected, in our view, and we see no material change to our view", Goldman Sachs said in a note.
As a whole, while the European banking sector was up 0.6 percent on the day, it remains one of the worst performers of 2018 with a decline of more than 12 percent since the beginning of the year.
Among fallers, Belgium's Galapagos helped bring up the rear with a loss of 4.4 percent. The stock regained of its earlier losses following disappointing drug trial results. (Reporting by Julien Ponthus and Kit Rees; Editing by Toby Chopra)