Shanghai Futures Exchange copper rose by 0.9 percent to 36,240 yuan ($5,567) a tonne after China announced fresh spending measures to shore up its struggling economy, that also raised prospects for metals demand. China's state planner, National Development and Reform Commission, approved 13 fixed-asset investment projects totalling 138.8 billion yuan ($21.35 billion) in April, a spokesman told a press conference on Thursday.
The news helped to boost interest in commodities that had been hurt after poor corporate earnings results spooked markets over renewed weakness in the global economy. Among other metals, Shanghai zinc finished up 2.7 percent, while LME zinc's added 1 percent to its 3 pct gains overnight, underpinned by shrinking supply.
"The availability of spot cargo has just dried up all of a sudden," a trader in Singapore said. The downdraft in stocks had also undermined the dollar, which lent support to dollar-denominated metals, since when the dollar falls they become cheaper for buyers paying with other currencies. "Now we are looking at a dollar story emerge - a weaker dollar, stronger commodities," said chief investment officer Jonathan Barratt of Ayers Alliance in Sydney. "We haven't seen enough (negative) data at to conclude there will be a steeper correction."
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