Dec. 12 (Bloomberg) -- Copper futures fell for a second day in Shanghai amid speculation that a quarter-point cut in U.S. interest rates may not be enough to boost demand in the world's second-largest consumer of the metal.

Equity markets dropped on yesterday's decision by the Federal Reserve to lower the benchmark rate to 4.25 percent, which some economists said fell short of what's needed to avert a recession. Copper, used in buildings and power grids, often moves in line with economic growth expectations.

Copper for February delivery fell as much as 2.7 percent to 55,630 yuan ($7,539) a ton on the Shanghai Futures Exchange and traded at 55,880 yuan a ton at 10:01 a.m. local time.

U.S. stocks tumbled the most in a month yesterday, sending the Standard & Poor's 500 Index lower by 2.5 percent. The MSCI Asia Pacific Index slid 1.5 percent to 162.87 as of 10:04 a.m. Shanghai time, and is set for its largest drop since Nov. 21.

London Metal Exchange copper for delivery in three months was 1.7 percent down at $6,705.25 a ton at the same time. March delivery copper on the Comex division of the New York Mercantile Exchange was down 1.6 percent at $3.0405 a pound.

To contact the reporter for this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net

Last Updated: December 11, 2007 21:44 EST