* LME copper hits 3-week high after US, Japan data fillip * Market headed for 7.7 pct rise in May, fifth in a row By Nick Trevethan SINGAPORE, May 29 (Reuters) - Copper rose to a three-week high on Friday, building on a 2 percent rally in the previous session after fresh optimism about Japan and positive U.S. durable goods, housing and jobs data. Copper gained after the U.S. Commerce Department reported new orders for durable goods rose 1.9 percent from March, the biggest percentage advance since December 2007. Other data showing that sales of new U.S. single-family homes rose slightly in April and fewer workers filed for first-time jobless aid last week also fed sentiment that the world's biggest economy may have turned a corner. Sentiment also got a boost after Japan's industrial output jumped 5.2 percent in April, much more than expected and the second straight month of increase, as companies continue to restock after a heavy run-down of inventories. Friday's later data clutch will also be scrutinised, including numbers from Germany on retail sales for April and euro zone flash inflation for May, followed by preliminary first-quarter GDP figures for the United States. "We are getting some better numbers and the currency markets are supporting metals prices," ANZ's senior commodities analyst Mark Pervan said. "We may now be looking at a W-shaped recovery. We are in the first V, and another is to come though. I don't think it will be as steep as the first. You'll be hard pressed to see things back to the December lows." London Metal Exchange copper for delivery in three months rose $5 to $4,760 a tonne at 0726 GMT after a three-week peak of $4,777. The market, up 7.7 percent in May, is heading for its fifth consecutive monthly rise, but May's performance is its weakest since January. Shanghai markets are closed Friday for the second day of the two-day Dragon Boat Festival holiday. Other commodities are also on the rise. The Reuters-Jefferies CRB index, a global commodities benchmark, was up 12.3 percent in May, on its way to the biggest monthly gain since July 1974. Stocks of copper in LME warehouses fell by 2,150 tonnes to 317,125 tonnes while cancelled warrants rose to 43,650 from 43,375 tonnes. For graphics showing weekly global metals stocks, click: Copper: http://graphics.thomsonreuters.com/059/GLB_CPRSTK09.jpg Aluminium: http://graphics.thomsonreuters.com/059/GLB_ALISTK09.jpg Zinc: http://graphics.thomsonreuters.com/059/GLB_ZNCSTK09.jpg Nickel continued its flirtation with resistance towards $14,000, trading at $13,630. Support came from high levels of cancelled warrants -- 6 percent globally. In Asia almost a quarter of the 16,000 tonnes in warehouses is tagged for delivery and cancellations are rising in Europe, too. "Cancelled nickel in Europe is up -- maybe part of a seasonal restocking. The stainless industry there frequently draws on LME stocks in the third quarter," Pervan said. Base metals prices at 0726 GMT Metal Last Change Pct Move End 2008 Pct chg 09 LME Cu 4760.00 5.00 +0.11 3060.00 55.56 LME Alum 1412.00 0.00 +0.00 1535.00 -8.01 COMEX Cu** 217.25 3.70 +1.73 139.50 55.73 LME Zinc 1494.00 19.00 +1.29 1208.00 23.68 LME Nickel 13630.00 130.00 +0.96 11700.00 16.50 LME Lead 1505.00 27.00 +1.83 999.00 50.65 LME Tin 13625.00 -25.00 -0.18 10700.00 27.34 Dollar/yuan 6.8278 \ 6.8287 ** 1st contract month for COMEX copper (Editing by Ben Tan)

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