By Bloomberg News March 16 (Bloomberg) -- Copper advanced in Asian trading after reaching a two-week low yesterday, as a slide in the dollar increased the appeal of raw materials as an alternative investment. Three-month delivery metal on the London Metal Exchange gained as much as 0.5 percent to $7,340 a metric ton, and traded at $7,335 at 10:05 a.m. in Shanghai. Prices reached $7,270 yesterday, the lowest level since March 2. The June contract on the Shanghai Futures Exchange lost as much as 1.1 percent to 57,760 yuan ($8,461) a ton and last traded little changed at 58,360 yuan. Commodity prices slumped yesterday after the dollar rebounded to above 80 on an index of six major currencies, and on concern that demand from China, the world’s largest consumer, may weaken because of steps aimed at cooling economic growth. “Metals are swinging counter to the dollar” as there’s nothing new on economic fundamentals, Chen Jian, an analyst at Minmetals Haiqin Futures Co. said from Beijing today. The dollar index retreated 0.1 percent to 80.143 at 10:08 a.m. in Shanghai. China’s consumer prices rose to a 16-month high and new loans exceeded forecasts in February, according to data released last week, adding to the case for the central bank to raise rates. The country’s stimulus spending and bank lending spurred record imports of industrial metals in 2009. Aluminum in London added 0.2 percent to $2,232 a ton, zinc was unchanged at $2,280, lead was little changed at $2,205 a ton, nickel was 0.1 percent higher at $21,520, and tin rose 1.2 percent to $17,650. --Li Xiaowei. Editors: Richard Dobson, Gavin Evans. To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net

Source