By Glenys Sim Dec. 15 (Bloomberg) -- Copper gained in Asia as the dollar slumped on speculation U.S. automakers may be rescued as part of the $8.5 trillion policy markers are spending, leading to concerns about increased money supply. The metal also rose after equities gained on the prospect U.S. President-elect Barack Obama’s spending proposal, which may reach $600 billion, will revive economic growth. The dollar fell to an eight-week low against the euro and traded near a 13-year low against the yen. “It’s mainly moving with the weaker dollar,” Liu Biyuan, an analyst at GF Futures Co., said from Guangzhou today. “A rescue of the automakers in the U.S. will also help improve sentiment.” London Metal Exchange copper advanced as much as 3.3 percent to $3,280 a metric ton, and was at $3,237 at 10:47 a.m. Singapore time. The metal has halved in value this year as the global economy tips into a recession. “The defining feature for copper in early 2009 will be the weak demand conditions,” Societe Generale SA analysts led by Frederic Lasserre said in a quarterly report. Societe General expects copper supply to outpace demand by 170,000 tons in 2008, and by 350,000 tons next year. The bank forecasts copper to average $3,600 a ton in 2009. March-delivery copper on the Comex division of the New York Mercantile Exchange rose 2.8 percent to $1.4680 a pound, while copper for February delivery on the Shanghai Futures Exchange gained 4.1 percent to 24,560 yuan ($3,587) a ton at 10:49 a.m. Singapore time. Among other LME-traded metals, aluminum rose 2.1 percent to $1,531 a ton, zinc added 3.3 percent to $1,100, and lead gained 0.7 percent to $1,025. To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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