Oct. 8 (Bloomberg) -- Copper advanced on expectations of post-holiday demand from China, the top consumer, outweighing a stalemate over the debt ceiling and a government shutdown in the U.S., the second-biggest user.
The contract for delivery in three months on the London Metal Exchange rose as much as 0.4 percent to $7,275 a metric ton and was at $7,258.50 by 4:01 p.m. in Tokyo. Futures for delivery in December rose 0.2 percent to $3.304 a pound on the Comex in New York.
China’s stocks rose on the first day back from a national holiday as retailers and property developers rallied on increased sales. A gauge of China’s service industries dropped to 52.4 in September from 52.8 a month earlier, HSBC Holdings Plc and Markit Economics said in a statement today. A number more than 50 indicates an expansion.
“The market was supported by the Chinese markets after a week-long holiday,” said Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co. in Seoul. Concern about the U.S. government shutdown and debt ceiling issues would continue to limit further gains in the market, Chae said.
Stockpiles tracked by the LME dropped for a 23rd day to 523,425 tons, the least since March, exchange data showed yesterday.
Metal for delivery in December on the Shanghai Futures Exchange fell 0.5 percent to close at 52,520 yuan ($8,584) a ton.
On the LME, aluminum, tin, zinc and lead rose. Nickel was little changed.
--Editors: Jarrett Banks, Ovais Subhani