Recasts, adds comment and changes dateline from Beijing

By Pratima Desai

LONDON, Aug 12 (Reuters) -Copper rose on Monday alongside equities as traders bought back their short positions on the expectation of bottoming prices ahead of a slew of data this week from top consumer China and the United States.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.9% at $8,949 a metric ton at 0923 GMT. Prices of the metal used in power and construction hit a 4-1/2-month low of $8,714 last week.

Mounting fears of recession in the United States triggered a sell-off last week across equity and commodity markets. However, better than expected weekly U.S. jobs data helped calm markets.

"There's a fair amount of short-covering going on still and some buying interest from China at these lower prices," a metals trader said, adding that Chinese buyers had been sidelined after prices rose to records above $11,100 in May.

Industrial metals markets are awaiting July data due this week on China's new yuan loans and total social financing, viewed as an indicator of future industrial metals demand.

Also due from China this week is data on house prices, industrial production and urban investment.

Focus is also on U.S. consumer prices data on Wednesday, which could determine the timing of interest rate cuts by the U.S. Federal Reserve, which would mean a weaker U.S. currency and firmer demand for dollar-priced metals.

Traders also pointed out a more than 12,000 ton rise in cancelled warrants, metal earmarked for delivery from LME-registered warehouses, over a couple of days last week as a sign the uptrend in copper stocks could be ending.

Copper inventories MCUSTX-TOTAL in LME warehouses at 296,125 are up 185% since the middle of May.

On the radar, but not yet having any impact, is Zambia closing a border with the Democratic Republic of Congo, a major copper producer. Congo production is typically transported through Zambia to South Africa where it is shipped out.

In other metals, aluminium CMAL3 was up 1% at $2,324 a ton, zinc CMZN3 added 1.1% to $2,767, lead CMPB3 gained 1.4% to $2,066, tin CMSN3 advanced 0.8% to $31,550 and nickel CMNI3 climbed 0.5% to $16,235.

Reporting by Pratima Desai; editing by Susan Fenton

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