MARKETS-METALS (UPDATE 3) * Dollar dips, stock markets up as risk appetite returns * Inventory trends continue to support metals * Aluminium, lead hit 1-month high, zinc hits 4-month peak (Adds fresh comment/details, changes dateline from Singapore) By Maytaal Angel LONDON, Sept 6 (Reuters) - Copper prices rose near four-month highs on Monday as investors bet on improved demand following better-than-forecast jobs data in the United States, the world's largest economy. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,725 a tonne at 0928 GMT from a close of $7,640 on Friday, when the metal used in power and construction hit a four month high of $7,750. U.S. non-farm payrolls fell 54,000 in August, data showed Friday, much less severe than the 100,000 job losses analysts had forecast. Losses in June and July were also revised down. Stock markets rose in Asia and Europe on Monday, boosting sentiment, while the dollar fell versus a currency basket, making dollar-priced metals cheaper for non-U.S. investors. "Sentiment is reasonably positive towards base metals, we're coming out of summer, we've got some better economic data ... why should we head towards double dip, the jobs data on Friday doesn't back that view," said Robin Bhar, analyst at Calyon. Inventory trends also remain supportive. Last week, copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 4 percent from a week earlier, data showed Friday. LME stocks fell 800 tonnes on Monday to 396,875, their lowest since November last year. Meanwhile, the amount of material set to leave LME warehouses stands at around 7 percent of total stock levels. "A month ago, the rallies were unsustainable, as worries about the macroeconomic backdrop were fanned by a run of disappointing economic data releases. However, the Fed's reassurances that it is prepared to do what is necessary to maintain growth appear to have restored confidence," said Standard Bank in a note. "We are expecting a strong final quarter for the base metals. These include upgrades to our nickel and tin prices forecasts." The bank now sees nickel averaging $21,310 a tonne this year from $20,225 previously. It sees tin averaging $18,875 a tonne from $17,300 previously. TOP PERFORMER Soldering metal tin rose 1.4 percent to $21,500, still backed by worries about supply from top exporter Indonesia and by declining stocks. LME tin stocks rose 160 tonnes on Monday but at 14,385 they are near levels last seen in May 2009. Tin prices have risen around 27 percent this year, making it the top performer on the LME complex. Stainless steel-making ingredient nickel rose nearly 3 percent to $22,175 a tonne, while zinc jumped over 2 percent to $2,197, having earlier hit its highest since early May at $2,202. Traders in Shanghai noted buyers have returned to the market in the past two weeks as producers and merchants held back physical sales in China on hopes of higher prices, given the threat of supply disruption from maintenance outages. Elsewhere, aluminium, used in transport and packaging, was at $2,189 from $2,148, having hit a one month high earlier of $2,190, while battery material lead was at $2,207 from $2,168, having hit a one month high earlier of $2,210. Metal Prices at 0933 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 351.80 2.15 +0.61 334.65 5.12 LME Alum 2183.00 35.00 +1.63 2230.00 -2.11 LME Cu 7715.00 75.00 +0.98 7375.00 4.61 LME Lead 2201.00 33.00 +1.52 2432.00 -9.50 LME Nickel 22125.00 525.00 +2.43 18525.00 19.43 LME Tin 21450.00 250.00 +1.18 16950.00 26.55 LME Zinc 2190.00 38.00 +1.77 2560.00 -14.45 SHFE Alu 15695.00 125.00 +0.80 17160.00 -8.54 SHFE Cu* 60530.00 650.00 +1.09 59900.00 1.05 SHFE Zin 18090.00 470.00 +2.67 21195.00 -14.65 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Maytaal Angel. Editing by Anthony Barker)

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