Copper gained for the first time in three days in London after Bank of Japan governor nominee Haruhiko Kuroda said he would do whatever it take to curb deflation and as U.S. manufacturing data beat expectations. Aluminum rose for the first time in 11 days.
Copper for delivery in three months climbed as much as 0.8 percent to $7,761 a metric ton on the London Metal Exchange before trading at $7,749 at 11:13 a.m. Tokyo time. The metal touched $7,652 on March 1, the lowest since Nov. 19, and dropped 1.3 percent last week.
Kuroda told a parliamentary hearing that the BOJ hasn’t bought enough assets to end deflation. U.S. consumer confidence increased and manufacturing grew at the fastest pace since June 2011, easing concern about the economy as $85 billion of federal spending cuts were set to begin.
“Kuroda’s comment and last Friday’s better-than-expected U.S. data provided support for copper and other metals,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. Still, rising stockpiles in London and Shanghai would limit further gains in copper, while investors are closely watching China this week for direction, Hwang said.
Chinese legislators begin an annual conference tomorrow, during which the government usually announces economic targets for the year. China’s manufacturing Purchasing Managers’ Index was 50.1 in February, according to government data on March 1. The reading compares with 50.4 in January. A number above 50 indicates expansion.
Copper stockpiles monitored by the Shanghai Futures Exchange rose to 226,201 tons last week, the highest since March 2012, while those tracked by the London exchange extended to 458,775 tons, a 16-month high.
Copper for May delivery on the Shanghai exchange declined 0.3 percent to 56,550 yuan ($9,078) a ton. The May contract on the Comex in New York gained 0.5 percent to $3.5175 per pound.
On the LME, zinc, lead, nickel and tin also climbed.
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