Jan. 12 （Bloomberg） -- Copper in London climbed for a second day after Japan joined China in buying euro-area bonds, easing concerns that Europe’s debt crisis may derail the global economic recovery. Zinc and lead also rose.
Copper for three-month delivery on the London Metal Exchange gained as much as 0.9 percent to $9,594 a metric ton, and traded at $9,564 at 11:50 a.m. in Singapore. The metal, which reached a record $9,754 on Jan. 4, advanced 2 percent yesterday, the most since Dec. 13.
“There’s so much liquidity and so much optimism in the global recovery that there’s no stopping the uptrend,” Liang Lijuan, an analyst at Cofco Futures Co., said from Beijing.
Japan said yesterday it plans to purchase bonds issued by Europe’s financial-aid funds, driving the euro higher against the dollar boosting demand for dollar-denominated commodities. China has also voiced support for Europe, with Vice Premier Li Keqiang last week pledging more purchases of Spain’s debt.
April-delivery metal on the Shanghai Futures Exchange gained for a third day, climbing as much as 1.3 percent to 71,830 yuan （$10,862） a ton, and prices in New York rose 0.5 percent to $4.3690 a pound.
China’s foreign-exchange reserves climbed by a record last quarter and lending exceeded the government’s annual target, the central bank said yesterday, increasing pressure on the central bank to tighten policies to curb liquidity and inflation.
“Once in a while, the concerns about tightening in China surface but the market quickly rebounds from that negative sentiment,” said Liang.
Zinc in London rose 0.5 percent to $2,416 a ton, lead gained 0.6 percent to $2,610 a ton and nickel climbed 0.4 percent to $24,790 a ton. Aluminum was little changed at $2,495.25 a ton, while tin dropped 0.4 percent to $26,450 a ton.
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