Updates prices

By Mai Nguyen

Aug 28 (Reuters) -APrices of most base metals prices fell on Wednesday, snapping a recent rally that was driven by hopes of a U.S. interest rate cut in September, as demand concerns weighed on sentiment and investors awaited more economic data from major economies.

Three-month copper on the London Metal Exchange (LME) CMCU3 fell 1.4% to $9,312.50 per metric ton by 0812 GMT. The contract had hit a near six-week high on Tuesday.

The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed down 0.5% at 74,590 yuan ($10,464.07) a ton. Earlier in the session, it hit 75,580 yuan, the highest since July 23, tracking overnight gains in London.

"Metals have been rising largely with help of a weak dollar, exiting bears and CTA (Commodity Trade Advisor) buying. The rise has ignored soft economic data from most parts of the world," said Sandeep Daga, a director at Metal Intelligence Centre, referring to CTA investment funds largely driven by computer programs.

The dollar index .DXY has dropped more than 4% since the beginning of July, weighed by expectations of a U.S. rate cut, making greenback-priced metals cheaper to holders of other currencies.

Though physical demand has improved slightly in China for copper, concerns lingered amid weak factory output and low confidence in the country's struggling property sector.

"While all metals are overheated after a one-way rally, many metals have reached their key technical resistance on charts. This might cool metals in the coming weeks. Going ahead, Chinese PMI (Purchasing Managers' Index) and U.S. job report will show the way," Daga added.

LME aluminium CMAL3 fell 1.4% to $2,514 a ton, nickel CMNI3 declined 0.6% to $17,035, zinc CMZN3 decreased 2% to $2,883.50, lead CMPB3 shed 1.7% to $2,088 and tin CMSN3 eased 0.3% to $33,135.

SHFE nickel SNIcv1 fell 0.7% to 131,110 yuan and lead SPBcv1 shed 0.9% to 17,515 yuan, while tin SSNcv1 advanced 0.3% to 266,180 yuan.

Both SHFE zinc SZNcv1 and aluminium SAFcv1 remained nearly flat at 24,015 yuan and 19,905 yuan, respectively.

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($1 = 7.1282 yuan)

Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and Sumana Nandy

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