* Uncertainty over economies of U.S., Europe weighs * Copper at lowest since June 29 on LME and ShFE * ShFE aluminium and zinc hit daily trade limit * Beijing's next monetary policy move to guide metals markets * Coming Up: US non-farm payrolls; 1230 GMT (Updates prices, adds quotes and details) By Carrie Ho SHANGHAI, Aug 5 (Reuters) - LME copper extended losses on Friday after investors fled risky assets on fears the United States was heading for another recession and a debt crisis was engulfing two of the euro zone's largest economies. "There are too many uncertainties today and investors are averting risk," said Shanghai CIFCO Futures analyst Zhou Jie. "Most of it is based on a lack of confidence in the U.S. economy, and a rout in European stocks did not help." Three-month copper on the London Metal Exchange fell 2.3 percent to $9,143 a tonne by 0706 GMT, the lowest since June 29. It lost 1.9 percent in the last session. The most-active October copper contract on the Shanghai Futures Exchange SCFcv1 opened sharply down and closed the session 4.2 percent lower at 68,570 yuan per tonne, not far from its session low of 68,530 yuan, the lowest since June 29. Base metals fell across the board in Shanghai, losing more than 3.5 percent each, with the most-active October aluminium contract SAFcv1 breaching the daily trade limit after falling more than 4 percent from the previous day's settlement price. Zinc SZNcv1 crashed to its daily trade limit twice in the session, dropping to 17,165 yuan early in the session and closing at that level later. Asian stocks tumbled as much as 5 percent on Friday after panic triggered the worst sell-off on Wall Street since the global financial crisis, prompting investors to slash positions and scramble for cash and government bonds. U.S. crude CLc1 plunged $3.76 to a low of $82.87 a barrel, the lowest since Nov. 26, while Brent LCOc1 fell $2.95 to $104.30, the lowest since June 27, after dropping almost $6 in the previous session. The European Central Bank resumed buying government bonds after a four-month break and announced new longer-term funding for liquidity-starved banks. But after a brief hiccup, Italian and Spanish bond yields continued their inexorable climb towards danger levels, showing that financial markets were unimpressed with the attempt to tame the euro zone debt crisis. Spain's Treasury said on Thursday it had suspended a bond auction originally planned for Aug. 18, but was careful to note the cancellation of the auction was not a response to market turbulence. All eyes are now on key U.S. nonfarm payroll data due later on Friday for signs of where the world's biggest economy is headed, and more importantly, at China's next monetary policy move. "There is pessimism about today's U.S. nonfarm payrolls numbers, but better-than-expected figures can turn things around in the short term," Zhou said. "Investors will be looking out for any changes in China's monetary policy. Any statement on this will have a great impact on the market. If monetary tightening policy continues here, sentiment will be further dampened, and the selloff will continue," said Jinrui Futures analyst Zhao Kai. China will report a slew of July economic and trade data next week including on inflation, factory activities and trade figures, which will inform Beijing's next policy move. In Chile, hundreds of workers on Friday accepted a company offer to end a two-week strike at the world's top copper mine, Chile's Escondida, in an initial vote that indicated the stoppage may be in its final hours. Base metals prices at 0706 GMT Metal Last Change Pct Move YTD pct chg LME Cu 9143.00 -212.00 -2.27 -4.76 SHFE CU FUT OCT1 68570 -3040 -4.25 -4.57 LME Alum 2455.00 -21.00 -0.85 -0.61 SHFE AL FUT OCT1 17485 -650 -3.58 3.83 HG COPPER SEP1 414.00 -8.70 -2.25 -6.75 LME Zinc 2245.00 -85.00 -3.65 -8.52 SHFE ZN FUT OCT1 17165 -1085 -5.95 -11.86 LME Nickel 23000.00 -650.00 -2.75 -7.07 LME Lead 2407.00 -83.00 -3.33 -5.61 SHFE PB FUT 16270 -650 -3.84 -11.34 LME Tin 24700.00 -805.00 -3.16 -8.18 LME/Shanghai arb 339 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month Shanghai lead launched on March 24 (Editing by Clarence Fernandez, Himani Sarkar)

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