Copper hits one-month on strong China factory data, weak dollar

****LONDON: Copper prices crept to their highest in more than a month on Monday, supported by upbeat manufacturing data from top metals consumer China and a weaker dollar.****

Three-month copper on the London Metal Exchange was little changed at USD9,896 a metric ton in official open-outcry trading after touching its highest since July 24 at USD9,947.

LME copper has gained 13 percent this year, having rebounded from USD8,105 in early April, the weakest in more than 16 months. Investors took heart from a private sector survey on Monday that showed China’s factory activity in August expanded at the quickest pace in five months on the back of rising new orders.

“Macro and cyclical conditions in China are generally on the up. That should be good for final demand,” said WisdomTree commodity strategist Nitesh Shah. The positivity is not restricted to commodities, Shah added.

“If you look at Chinese equities, they’ve been roaring,” he said. Shanghai shares flirted with 10-year highs on Monday.

The most-traded copper contract on the Shanghai Futures Exchange gained 0.7 percent to 79,780 yuan (USD11,153.52) a ton, rising for a second straight session.

Gains on metals markets were restrained by worries about US tariffs, which helped to dampen factory activity in other parts of Asia. The dollar index hit a five-week low on Monday as investors await US labour market data this week, which could alter expectations for interest rates.

A softer dollar makes commodities priced in the US currency cheaper for buyers using other currencies. Among other metals, LME aluminium shed 0.3 percent in official activity to USD2,609 a ton and tin lost 0.5 percent to USD34,850 while lead was up 0.2 percent at USD1,994, zinc rose 0.3 percent to USD2,828 and nickel firmed by 0.3 percent to USD15,465, its strongest since July 25.