KUALA LUMPUR: Gold, copper and U.S. crude were headed for weekly gains on Friday as the threat of the euro zone's debt crisis waned after the region's central bank announced steps to recapitalize banks, easing concerns that demand for fuel and energy will falter. Spot gold is poised for its first increase after four straight weeks of falls, with U.S. crude futures headed for their biggest weekly gain in seven months, while LME copper climbed after a rout in the three months to September took prices down a quarter. "Asian currencies, equities and other markets are buoyed by the positive sentiment coming out of Europe," said Chow Penn Nee, an economist at UOB Bank Ltd. in Singapore. "But we're definitely not out of the woods yet. This is just a very small part in terms of helping European banks." Market confidence was boosted by the European Central Bank's move to provide struggling European banks with a renewed offer of longer-term loans to ward off a new credit crunch and the European Union plan to recapitalize banks. Investors pushed Tokyo's Nikkei share average up 1.1 percent on Friday, and MSCI's broadest index of Asia Pacific shares outside Japan rose 2.8 percent. LME copper rose 1.6 percent to $7,343 a tonne by 0410 GMT, extending increases from the previous session. Copper, used in wiring, cables and construction, has risen nearly 4 percent so far this week, following a drop of 23 percent in the previous four weeks. The metal lost a quarter of its value in the three months to Sept. 30, making it one of the worst performers in the third quarter. Spot gold rose to $1,663.09 an ounce by 0351 GMT, still off September's lifetime high around $1,920. U.S. gold futures climbed 0.7 percent to $1,651.90 an ounce, snapping four weeks of declines. U.S. crude gained 0.3 percent, with prices having risen 5.2 percent this week in the biggest such jump since March. Brent inched up 0.2 percent to $105.90, and have climbed 4.5 percent this week, the most since July 10. The dollar is steady against a basket of major currencies after two days of declines that cheapened the costs of commodities for holders of other currencies. CHINA TO RE-OPEN Shanghai re-opens on Monday after a week-long closure for national holidays, raising speculation Chinese demand for copper will kick in as investors stock up after recent price declines. The return of China's markets may also boost grain market activity . Strong export sales of corn and soybeans gave support after prices fell sharply last week, spurring demand from traditional buyers. Wheat, gaining for the first time in six weeks, inched up on Friday to $6.18-1/2 a bushel after losing 1 percent in the last session on ample global supplies and forecasts of rain in the drought-hit U.S. Plains. Soybeans fell 0.4 percent after a Chicago-based commodity research firm raised its yield estimate for the U.S. crop. The soybean market has lost almost 2 percent this week in its fifth straight slide, on ample supplies and harvest pressure. Grains trade is expected to remain choppy until Wednesday's release of the U.S. Department of Agriculture's monthly supply and demand report, when the government will update its crop production forecast. Investors await U.S. non-farm payrolls for September, due at 1230 GMT and expected to show 60,000 new jobs created and the unemployment rate unchanged at 9.1 percent.

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