* LME copper declines 1.5 percent, snapping two days of gains * S&P warning spooks investors * ADB warns of "greater downside risks" for Asian economies (Updates prices) By Jane Lee SINGAPORE, Dec 6 (Reuters) - London copper fell on Tuesday for the first time in three days after Standard & Poor's said it may downgrade euro zone countries and the Asian Development Bank warned that Asia faces "much greater" downside risks compared with a few months ago. Three-month copper on the London Metal Exchange dropped 1.5 percent to $7,821.50 a tonne by 0712 GMT. The most-traded February copper contract on the Shanghai Futures Exchange eased 0.5 percent to 57,670 yuan a tonne. "In the next two months, things don't look too rosy," said Henry Liu, head of commodity research at Mirae Asset Securities in Hong Kong. "December's demand will be slow because it's winter and January will be quiet because of the Lunar New Year. Basically, there's not much growth but demand is not collapsing either." Copper may trade between $8,200 and $8,500 a tonne in 2012, Mirae's Liu forecasts. S&P said it had told 15 of the 17 euro zone countries, including Germany, France and four others with top AAA credit rating, that it might downgrade them en masse within 90 days, if EU leaders fail to reach an agreement on how to solve the region's debt crisis in a summit on Friday. S&P's comments put more pressure on leaders in the region to come up with stronger measures to resolve a long-running debt crisis at the summit. French President Nicolas Sarkozy and German Chancellor Angela Merkel agreed on a master plan involving treaty change that would include automatic penalties for governments that fail to keep their deficits under control, and an early launch of a permanent bailout fund for euro states in distress. The euro zone debt crisis has been the biggest concern for commodity investors this year, weighing on the global demand outlook and dragging copper down 19 percent this year and off 23 percent from a record $10,190 reached in February. Outside of the euro zone, growth had been patchy. The U.S. service sector eased last month and new orders for factory goods fell in October, tempering recent optimism that the U.S. economy may be poised for a more vigorous rebound. The Asian Development Bank said in its Asian Economic Monitor on Tuesday that Emerging East Asia's economic momentum remains robust, but the region faces greater risks than just three months ago as Europe's debt problems and a fragile U.S. economy could worsen into another global crisis. Base metals prices at 0712 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7821.50 -118.50 -1.49 -18.53 SHFE CU FUT FEB2 57670 -290 -0.50 -19.74 LME Alum 2114.00 -16.00 -0.75 -14.41 SHFE AL FUT FEB2 16170 -50 -0.31 -3.98 HG COPPER MAR2 355.45 -6.10 -1.69 -19.93 LME Zinc 2012.50 -27.50 -1.35 -17.99 SHFE ZN FUT MAR2 15690 -45 -0.29 -19.44 LME Nickel 18100.00 -405.00 -2.19 -26.87 LME Lead 2087.50 -32.50 -1.53 -18.14 SHFE PB FUT 15605 0 +0.00 -14.96 LME Tin 19950.00 50.00 +0.25 -25.84 LME/Shanghai arb 577 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month (With additional reporting by Manolo Serapio Jr. in Singapore;

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