Copper prices rose 0.6 percent in London and Shanghai, as creeping optimism about Chinas domestic demand growth was offset by the likelihood of slowing imports. Investors were comforted by comments from Chinese Premier Wen Jiabao, who said 595 billion yuan had been allocated in this years budget for stimulus moves and the country could issue new measures if needed.
"There is a feeling of optimism in China. The equity markets have been doing well and the government can inject new stimulus at any time," a dealer in Shanghai said. High levels of lending by Chinese banks, the first three-day rally on Wall Street since the start of February and better-than-expected US retail sales data offset a collapse in Chinas exports in February.
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