The most-traded May copper contract on the Shanghai Futures Exchange rallied 1.8 percent to 42,840 yuan ($6,846) a tonne, soothed by brighter lending figures out of China that pushed shorts to cover. Traders bet easier lending could improve demand from China. "That new loan data spooked the Chinese shorts a little," said a trader in Singapore.
Chinese banks extended 1.02 trillion yuan ($162.87 billion) worth of new loans in February, well above market expectations, data showed this week. Falling oil prices are feeding through to boost global economic growth, evident in rising inflation in Asia in particular, said Jonathan Barratt, chief investment officer at Sydney's Ayer's Alliance.
"Plus, seasonally (in China) we're seeing consumption ... If the States are showing good gains, then the other economies will follow because they're following the same stimulus measures."
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