Updates prices

By Mai Nguyen

Aug 9 (Reuters) -Prices of base metals rose on Friday, buoyed by gains in the stock markets and by rate cut hopes and better-than-expected U.S. data that relieved some demand worries.

Three-month copper on the London Metal Exchange CMCU3 rose 1.3% to $8,911 per metric ton by 0804 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 advanced 1% to 71,670 yuan ($9,990.38) a ton.

U.S. jobless claims dropped more than expected last week, assuaging fears of a looming economic downturn that will dampen physical metal demand.

U.S. Federal Reserve policymakers are increasingly confident that inflation is cooling enough to allow rate cuts ahead, which is supportive for metals prices.

On a weekly basis, copper was set for a fifth straight fall on both LME and SHFE. Both contracts hit their lowest since March earlier in the week.

Metals prices might rebound for a few more sessions, but there are limited catalysts for higher prices, said a trader, pointing to the LME copper inventories that surged to their highest in September 2019. MCUSTX-TOTAL

"I think we're heading lower (in general) but in a more orderly fashion. The bounces in the market so far are just due to the sudden collapse after the first unwinding of carry trade," said the trader.

The LME cash copper contract was trading at a $123.58-a-ton discount to the three-month contract CMCU0-3, reflecting abundant near-term supply.

LME aluminium CMAL3 increased 1.7% to $2,312.50 a ton, nickel CMNI3 climbed 1.7% to $16,415, zinc CMZN3 advanced 2.7% to $2,718.50, lead CMPB3 rose 2.8% to $2,020 and tin CMSN3 jumped 3.8% to $31,650.

SHFE aluminium SAFcv1 rose 1.1% to 19,125 yuan a ton, nickel SNIcv1 advanced 2.3% to 130,900 yuan, zinc SZNcv1 climbed 3.3% to 22,605 yuan, lead SPBcv1 increased 3.3% to 17,905 yuan and tin SSNcv1 jumped 4.8% to 257,300 yuan.

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($1 = 7.1739 yuan)

Reporting by Mai Nguyen in Hanoi; Editing by Janane Venkatraman and Subhranshu Sahu

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