("BASE METALS: Shanghai Copper Rises Again; China Data, Europe Support," at 0833 GMT, misstated the percentage change and settlement price of benchmark copper on the SHFE in the third paragraph. The correct version follows:) SHANGHAI (Dow Jones)--Copper on the Shanghai Futures Exchange rose for the fifth consecutive session Friday on the back of growing optimism on Europe and a slight improvement in China's manufacturing activity. Short covering ahead of a weeklong Lunar New Year holiday, which starts Jan. 22, also contributed to the 4.6% on-week gain. The benchmark April copper contract settled 0.8% higher at CNY60,770 a metric ton. The red metal stayed firmly in positive territory throughout the session, initially lifted by encouraging jobs data out of the U.S. and successful bond auctions in France and Spain. Analysts said recent positive bond results from euro-zone countries indicated that financial stress in the region is easing, while positive economic data out of the U.S. pointed to a continued recovery in the world's largest economy, which underpins industrial metals. Copper inched up after the preliminary HSBC China PMI for January, as the slightly higher reading compared with December helped boost investor confidence, although it was the third straight month the index has been in contractionary territory. "It is a positive for metals as it shows the manufacturing sector is improving even in a month with a major holiday," Shanghai Cifco Futures analyst Fang Junfeng said. An initial gauge showed that manufacturing activity in China contracted for the third straight month, the latest sign that growth in the world's second-largest economy is still slowing. The preliminary HSBC China Manufacturing Purchasing Managers Index rose marginally to 48.8 in January compared with a 48.7 final reading in December, HSBC Holdings PLC said Friday. Analysts also attributed short covering to copper's gains Friday, with open interest declining 4,576 lots to 176,928 lots in the benchmark April contract. "Some just chose to cover shorts, as no one really knows what will happen during the holiday, [which is] part of the reason copper has been rising this week," a Shanghai-based analyst with a domestic brokerage said. Copper at the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, was quoted at CNY59,800-CNY60,000/ton, compared with CNY59,250-CNY59,450/ton Thursday. Three-month copper ended Thursday's PM kerb $121 higher at $8,360/ton at the London Metal Exchange. It was quoted 0.1% higher at $8,367.25/ton at 0700 GMT, when the SHFE closed. Benchmark aluminum settled steady, lead rose 1.1% and zinc gained 0.7%. Friday's settlement prices in yuan a ton and LME late kerb prices from Thursday in dollars a ton: Metal SHFE LME Copper Apr 60,770 Up 480 3Mo 8,360.0 Up 121.0 Aluminum Apr 16,390 Up 30 3Mo 2,231.0 Up 26.5 Zinc Apr 15,625 Up 105 3Mo 2,030.0 Up 28.0 Lead Mar 15,925 Up 180 3Mo 2,182.0 Up 43.0 -Yue Li contributed to this article; Dow Jones Newswires; (8621) 6120 1200; yue.li@dowjones.com

Source