* China factory sector contraction intensifies in August * Lead forward curve tightens after large LME stock draws * Coming up: Euro zone markit manufacturing PMI for August at 0758 GMT By Melanie Burton and Carrie Ho SINGAPORE, Sept 3 (Reuters) - London copper hit a one week high on Monday on hopes that central banks around the world will step in to fuel economic growth after concerns about the U.S. jobs sector and gloomy China factory data. A contraction in China's factory sector activity intensified in August as output and new orders dropped, while manufacturers cut prices to compete for business, a survey showed on Monday. The HSBC Purchasing Managers' Index fell to a seasonally adjusted 47.6, the lowest level since March 2009. The reading was little changed from a flash, or preliminary, estimate of 47.8 and was lower than 49.3 in July. The data, the latest evidence of the slowdown in the world's second-largest economy, precedes a Sept. 7 report on U.S. jobs growth that many investors believe is key to any decision on launching another bout of stimulus measures, especially after U.S. Federal Reserve Chairman Ben Bernanke expressed concern about employment levels in the country. Bernanke on Friday left the door wide open to a further easing of monetary policy, saying the stagnation in the U.S. labour market was a "grave concern", but he stopped short of providing a clear signal of imminent action. "The market is still looking to the major central banks around the world to step up to the plate and support policy and growth," said senior metals strategist Nick Trevethan at ANZ bank in Singapore. "The market is a bit disillusioned by China's policy inaction. We think China has to do something fairly drastic, maybe a 50, or even 100 basis point cut in the reserve requirement ratio because its repo action doesn't seem to have been especially effective." The People's Bank of China has been using short-term reverse repos since May to adjust liquidity in the market's main money rate, the seven-day repo rate, in more nuanced moves to support its economy than RRR or direct interest rate cuts. Three-month copper on the London Metal Exchange had ticked up 0.45 percent to $7,648 per tonne by 0712 GMT. It earlier hit $7,679 per tonne, the highest since Aug. 24. Copper closed August up 0.6 percent and has edged into positive territory for the year, but is still down about 13 percent from the year's peak hit in February. The most active December copper contract on the Shanghai Futures Exchange climbed 1.37 percent to 56,180 yuan ($8,800) per tonne. This week, investors will be focusing on a pivotal European Central Bank policy meeting on Thursday, in which chief Mario Draghi is expected to announce concrete steps to cut borrowing costs for indebted euro zone nations. LEAD STOCKS DROP LME lead prices have been supported by recent drawdowns from LME stocks. The spread between cash and the three-month contract on the LME hit the narrowest in four months on Friday, reflecting tightening supply that traders said was mostly consumption related. LME stocks have dropped by almost a third over the past two weeks, and this could trigger a spike in short-term prices in September, traders and warehouse officials said. Available stocks in LME-registered warehouses have slumped by about 92,000 tonnes, or 32 percent, since Aug. 13, and half of those drawdowns are due for delivery out of Singapore, draining the port of all but 1,725 tonnes of metal. DATA/EVENTS (GMT) Base metals prices at 0712 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7648.50 38.50 +0.51 0.64 SHFE CU FUT DEC2 56180 760 +1.37 1.48 HG COPPER DEC2 347.80 2.10 +0.61 1.22 LME Alum 1895.00 -7.00 -0.37 -6.19 SHFE AL FUT DEC2 15425 95 +0.62 -2.65 LME Zinc 1850.00 9.00 +0.49 0.27 SHFE ZN FUT DEC2 14840 155 +1.06 0.30 LME Nickel 16005.00 55.00 +0.34 -14.46 LME Lead 1973.00 8.00 +0.41 -3.05 SHFE PB FUT 15200.00 70.00 +0.46 -0.56 LME Tin 19600.00 250.00 +1.29 2.08 LME/Shanghai arb^ 510 Shanghai and COMEX contracts show most active months

Source