Copper jumped almost 6 percent, lifting other base metals with it on Friday on hopes that China, the world's biggest user of the red metal, will soon see an economic recovery. "There is a bit of belief that the Chinese stimulus package will begin to turn things around," said Dan Smith, an analyst at Standard Chartered. However, he said copper demand was still weak. China's stock market jumped nearly 4 percent in heavy trade on Friday, posting a weekly gain of almost 10 percent, on the back of hopes for an early recovery of the country's economy. Three-month copper on the London Metal Exchange was trading at $3,500 a tonne at 1033 GMT compared with $3,329 at the close on Thursday. Earlier it rose 5.8 percent to a high of $3,520. Imports of unwrought copper and semi-finished copper products by China are expected to remain high in January, and imports of copper cathode near December's record level. Copper prices have risen about 9 percent this week. However some market watchers said the rally may be premature. "We think such optimism is based on shaky foundations and expect prices to remain weak in 2009," Deutsche Bank said in a note. It expects a global refined copper market surplus of 920,000 tonnes in 2009. "It looks like China may be past the worst but the rest of world is still deteriorating," Standard Chartered's Smith said. Bank of Japan Governor Masaaki Shirakawa warned of mounting problems for the world's No.2 economy, saying slumping exports and weak share prices were taking a toll on growth and the nation's banking system. Monthly non-farm payrolls data in the United States, due at 1330 GMT, will give an indication on the extent of recession in the world's biggest economy. "It doesn't look like the U.S. has bottomed out yet," Smith said. The collapse in demand can be seen in growing inventories. Copper stocks in warehouses monitored by the Shanghai Futures Exchange rose 72 percent from two weeks ago, and aluminium inventories climbed 11 percent. China consumes around 13,000 tonnes of copper a day, and the rise in Shanghai inventories above 28,000 tonnes puts stocks at their highest since November 2008. Copper inventories in LME warehouses rose 2,025 tonnes to 504,625, the highest level since November 2003. Higher copper prices lifted all the base metals. Aluminium prices rose to $1,470 a tonne from $1,433. Aluminium stocks in LME warehouses jumped 8,725 tonnes to a record 2.87 million tonnes. Metal Prices at 1038 GMT Metal Last Change Percent Move End 2008 Ytd Percent

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