(Recasts, updates prices, adds quotes)
HANOI, Jan 4 (Reuters) – Copper and most other industrial metals rose on Monday as a weaker U.S. dollar boosted the appeal of the greenback-priced metals, with sentiment aided by gains in the commodities markets on hopes of a recovery in the global economy.
Three-month copper on the London Metal Exchange climbed 1.5% to $7,880 a tonne by 0533 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange advanced 0.2% to 58,090 yuan ($8,976.00) a tonne.
LME nickel jumped 3.5% to $17,195 a tonne, while zinc advanced 1% to $2,777.50 a tonne. ShFE nickel climbed 2.1% to 126,940 yuan a tonne, and ShFE lead increased 2.2% to 15,065 yuan a tonne.
“The end of year rebalancing — selling the winners, buying the laggards — is over. Metals are also repricing themselves higher after taking the cue from bitcoin. They are also supported by a weaker dollar,” a Singapore-based trader said.
The U.S. dollar kickstarted the new year by slipping broadly, while bitcoin hovered near a record high.
Other commodities, ranging from iron ore to oil and grains, also gained as optimism from vaccine rollouts and global fiscal support underpinned their prices.
“However, I won’t be chasing this rally…as the GSCI and BCOM indices are due to start their rebalancing in the next five days when they will be selling copper,” the trader said, referring to the S&P/Goldman Sachs Commodity Index and the Bloomberg Commodity Index.
* China’s Caixin/Markit Manufacturing Purchasing Managers’ Index was at 53.0 in December, indicating factory activities growth but down from November’s 54.9.
* China’s central bank issued a regulation last week to cap property loans by banks to guard against any over-lending to the property sector.
* Chinese electric vehicle battery firm GEM Co Ltd aims to double its stake to 72% in a nickel at Indonesia’s Morowali Industrial Park.
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$1 = 6.4717 yuan Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips and Uttaresh.V