* Base metals down after previous day's commodity and stocks rout * ShFE copper hits one-month low * ShFE aluminium and zinc hit daily trade limit * Uncertainty over economies of U.S., Europe led to panic * U.S. Non-farm payrolls, Jul; 1230 GMT (Updates prices, adds quotes and details) By Carrie Ho SHANGHAI, Aug 5 (Reuters) - LME copper extended losses on Friday after investors fled risky assets the previous day on fears the United States was heading for another recession and a debt crisis was engulfing two of the euro zone's largest economies. "There are too many uncertainties today and investors are averting risk," said Shanghai CIFCO Futures analyst Zhou Jie. "Most of it is based on a lack of confidence in the U.S. economy, and a rout in European stocks did not help." The most-active October copper contract on the Shanghai Futures Exchange SCFcv1 opened sharply down, falling 4 percent at one point to a session low of 68,750 yuan, the lowest since June 29. By the midday close at 0414 GMT, it was down 3.3 percent at 69,250 yuan per tonne, catching up with overnight losses in London. Base metals fell across the board on the ShFE, losing more than 3 percent each, with the most-active October aluminium contract breaching the daily trade limit after falling more than 4 percent of the previous day's settlement price. Three-month copper on the London Metal Exchange fell 0.9 percent to $9,270.50 a tonne, after losing 1.9 percent in the last session. Oil, an energy product that supports the price of aluminium, tumbled as much as 6 percent on Thursday, with U.S. crude crashing through technical support to its lowest since February. Zinc also breached its daily trade limit after falling to 17,165 yuan, but restarted trading after paring some losses. Asian stocks tumbled as much as 5 percent on Friday after panic triggered the worst sell-off on Wall Street since the global financial crisis, prompting investors to slash positions and scramble for cash and government bonds. The European Central Bank resumed buying government bonds after a four-month break and announced new longer-term funding for liquidity-starved banks. But after a brief hiccup, Italian and Spanish bond yields continued their inexorable climb towards danger levels, showing that financial markets were unimpressed with the attempt to tame the euro zone debt crisis. Spain's Treasury said on Thursday it had suspended a bond auction originally planned for Aug. 18, but was careful to note the cancellation of the auction was not a response to market turbulence. All eyes are now on key U.S. nonfarm payroll data due later on Friday for signs of where the world's biggest economy is headed. "There is pessimism about today's U.S. nonfarm payrolls numbers, but better than expected figures can turn things around in the short term," Zhou said. In copper, union workers on Thursday began a vote on whether to accept a company offer to end a 14-day strike at the world's top copper mine, Chile's Escondida, which has fanned global supply fears. Base metals prices at 0414 GMT Metal Last Change Pct Move YTD pct chg LME Cu 9270.50 -84.50 -0.90 -3.43 SHFE CU FUT OCT1 69250 -2360 -3.30 -3.62 LME Alum 2469.50 -6.50 -0.26 -0.02 SHFE AL FUT OCT1 17485 -650 -3.58 3.83 HG COPPER SEP1 419.65 -3.15 -0.92 -5.47 LME Zinc 2287.00 -43.00 -1.85 -6.81 SHFE ZN FUT OCT1 17355 -895 -4.90 -10.89 LME Nickel 23183.00 -467.00 -1.97 -6.33 LME Lead 2440.00 -50.00 -2.01 -4.31 SHFE PB FUT 16270 -650 -3.84 -11.34 LME Tin 25500.00 -5.00 -0.02 -5.20 LME/Shanghai arb 639 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month Shanghai lead launched on March 24 (Reporting by Carrie Ho; Editing by Clarence Fernandez)

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