HANOI  - London copper rose on Tuesday as investors hope an expanded U.S. pandemic aid package will spur a quick economic recovery, boosting consumption and demand for metals.

Three-month copper on the London Metal Exchange rose 1.4% to $7,898.50 a tonne by 0239 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange was almost flat at 58,720 yuan ($8,991.65) a tonne.

The U.S. House of Representatives approved a plan for $2,000 COVID-19 relief checks on Monday, up from a previous $600, before sending the measure on to a vote at Senate. 

A weaker dollar, which languished near a 2-1/2-year as U.S. lawmakers pushed forward with a COVID-19 relief package, also made greenback-priced metals cheaper and more appealing to holders of other currencies.

 

FUNDAMENTALS

* LME nickel rose 1.8% to $17,290 a tonne and ShFE nickel SNIcv1 advanced 0.5% to 128,330 yuan a tonne. LME aluminium fell 1.8% to $1,993 a tonne while aluminium dropped 2% to 15,440 yuan a tonne.

* Copper should outperform other base metals next year because of its widespread applications, while aluminium prices should also gain. 

* Chinese banks are expected to face headwinds raising funds next year due to bad loans issues. 

 

MARKETS NEWS

* Asian shares jumped, with Japanese stocks hitting a 29-year high, on hopes that a long-awaited U.S. pandemic relief package would expand while a Brexit deal boosted risk appetites. 

 

($1 = 6.5305 yuan)

(Reporting by Mai Nguyen; editing by Uttaresh.V) ((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))