Copper was set for a third weekly advance on optimism that plans by the Japanese government to spend 10.3 trillion yen ($116 billion) to boost the economy will increase demand. Other industrial metals also rose.
Metal for delivery in three months on the London Metal Exchange climbed as much as 0.6 percent to $8,162 a metric ton and traded at $8,123 by 10:42 a.m. in Shanghai. Aluminum rose for a fifth day, the longest winning streak since September.
Japanese Prime Minister Shinzo Abe’s fiscal spending plan is expected to increase gross domestic product by about 2 percentage points and create about 600,000 jobs, according to a statement from the Cabinet office today. The MSCI Asia Pacific Index is poised to gain for an eighth week, while the Standard & Poor’s 500 Index closed yesterday above its highest closing level since December 2007.
“Copper is supported by a rally in equities in Asia and the U.S.,” said Peng Guoliang, an analyst at Dadi Futures Co. “The physical market is quiet in China this season and today’s CPI and PPI data actually indicate the macroeconomic picture is rather mixed.”
Consumer prices in China gained 2.5 percent in December from a year ago, compared with the 2.3 percent median forecast in a Bloomberg News survey of 42 analysts. Producer prices fell 1.9 percent, compared with the estimate of a 1.8 percent drop.
China is the world’s biggest importer of copper. Metal for delivery in April fell 0.2 percent 58,640 yuan ($9,434) a ton on the Shanghai Futures Exchange. Futures for March delivery on the Comex in New York fell 0.2 percent to $3.7010 per pound.
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