* Shanghai copper down 0.1 pct * Beijing to mop up excess bank liquidity - sources * Investors comforted by Fed's pledge to fight unemployment * Coming Up: U.S. personal income July; 1230 GMT (Updates prices, adds quotes and details) By Carrie Ho SHANGHAI, Aug 29 (Reuters) - Shanghai copper edged down on Monday, dampened by a drop in China's stock market on news that Beijing will ask banks to hold more reserves as the government fights to contain inflation. Worries about a possible strike at the world's third largest copper mine, Indonesia's Grasberg, are expected to check losses. The most-active November copper contract on the Shanghai Futures Exchange SCFc3 inched down 0.1 percent to 67,380 yuan per tonne by its midday close after rising 1 percent in the previous session. China has ordered banks to include their margin deposits in required reserves at the central bank in an attempt to mop up excessive liquidity, banking sources said on Friday, the latest move in Beijing's campaign to rein in inflation. "Some banks told us they received the notice about the bank liquidity tightening move on Friday, although there hasn't been any official notices on it. In the longer term, this, along with fears of softness in global economic growth, will pressure copper prices," said Jinrui Futures analyst Zhao Kai. Federal Reserve Chairman Ben Bernanke on Friday stopped short of detailing further action to boost the U.S. recovery but said the central bank would consider what more it could do to fight high unemployment, giving some comfort to investors. "In the short term I think base metal price movements will be small as investors struggle to find direction after Bernanke's speech, where he didn't offer anything concrete on the U.S. economy but gave us some hope," Zhao added. A threat of supply disruption at Freeport-McMoRan Copper & Gold's Grasberg mine in Indonesia lent support to copper prices, after workers' talk with company failed to resolve a pay dispute. A weaker dollar also boosted commodity prices as the greenback inched down against a basket of major currencies in Asia on Monday, with traders speculating on more Fed stimulus next month in the face of an uncertain growth outlook. In New York, the benchmark September COMEX contract fell 0.1 percent to 409.60 cents per lb ($8,210.93 a tonne) by 0448 GMT, under pressure from latest U.S. Commodity Futures Trading Commission data, which showed that hedge and pension funds turned net short in copper for the first time since late 2009 in the week ended Aug. 23. Investors are also eyeing global growth prospects as the struggling U.S. economy expanded even more slowly than previously thought in the second quarter of 2011. But a breakdown of the growth suggested a new recession could be avoided. The new head of the IMF on Saturday called on global policymakers to pursue urgent action, including forcing European banks to bulk up their capital, to prevent a descent into a renewed world recession. In industry news, Terramin Australia said that its processing plant at its Angas lead and zinc mining operation is now fully operating after repairs following an electrical incident. It cut its full-year production forecast by 4 percent to 45,000 tonnes of zinc concentrate. Production of copper and zinc fell in July in Peru due to shrinking reserves at key mines and lower-quality ore, the government said on Sunday. The Andean country produced 100,478 tonnes of copper and 103,455 tonnes of zinc last month, down 5.6 percent and 22.7 percent on the year, respectively. The London Metal Exchange is closed for a summer bank holiday. Trading will resume on Tuesday. Base metals prices at 0448 GMT Metal Last Change Pct Move YTD pct chg SHFE CU FUT NOV1 67380 -60 -0.09 -6.22 SHFE AL FUT NOV1 17360 -20 -0.12 3.09 HG COPPER SEP1 409.60 -0.30 -0.07 -7.74 SHFE ZN FUT NOV1 17115 25 +0.15 -12.12 SHFE PB FUT 16855 95 +0.57 -8.15 Shanghai and COMEX contracts show most active months

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