* Spain gets 100 bln-euro package for its banks * China's copper imports post surprise rise in May * Nickel bucks trend, falls 0.4 percent By Maytaal Angel LONDON, June 11 (Reuters) - Copper posted its biggest gain in two months on Monday after Europe agreed a $125 billion bailout package for Spain's banks, and as economic data from top consumer China was not as bad as the market had feared. Euro zone finance ministers agreed to lend Spain up to 100 billion euros ($125 billion) for its bank rescue fund in a bid to reassure investors and prevent a bank run. The relief may be short-lived, however. Greek elections on Sunday could put Athens on a path to leaving the euro, which would then renew market pressure on Spain and Italy, which is also facing scrutiny over its public finances. All the same investors deemed copper oversold for now, taking comfort also from data showing China's May copper imports climbed nearly 12 percent from April, indicating demand could be stronger near term following the recent price slump. The data was a mixed bag, however, as it also showed China's inflation, industrial output and retail sales all flagged in May for a second straight month of sluggish growth, which helped explain China's surprise rate cut last week. Three-month copper on the London Metal Exchange rose nearly 3 percent to a session high of $7,506.75 a tonne, rebounding from a near six-month low of $7,233.25 on Friday. By 0842 GMT, it was up 1.82 percent at $7,428 a tonne. "The Spanish bailout takes short-term risk out of the market but it doesn't do much to address the underlying issues and we now have to wait for the Greek elections," said Credit Suisse analyst Tom Kendall. "The Chinese data over the weekend weren't as bad as some were fearing but it's a market across commodities where the rallies we are seeing are more short-covering than improving fundamentals." AN OPENING TO IMPORT A physical trader in Shanghai said the improved LME-ShFE arbitrage in May gave long-term contract buyers and those using copper for financing an opening to import. "Copper import losses fell to just around $140 a tonne at some point in May. The level was not ideal, but better than the $500-700 losses in the previous months," the trader said. Data also showed production of refined copper in China fell 1.4 percent from a month earlier to a three-month low in May, with some smelters taking the chance to carry out maintenance as consumption remained sluggish. Though output is expected to pick up in June, China's increased copper imports, its better than forecast exports and its easier monetary policy should ease worries about slow demand in the world's top copper consumer. Elsewhere, LME nickel bucked the broad-based rally, edging 0.4 percent lower to $16,888 a tonne, after going against the trend on Friday when it rose 2 percent while all other metals fell. Investors bought the metal after prices fell below $16,000 on Wednesday, its cheapest level since December 2009. Nickel was quoted down up 0.6 percent at $16,960 from $16,950 at 0845 GMT. Looking forward, analysts said weak global demand for stainless steel will keep pressuring nickel prices. But in the short term, they see some slight support from dwindling Chinese port stock levels due to lower import appetite and recent supply disruptions of nickel pig iron from Indonesia. "I am bearish on nickel over the longer term, but there can be a temporary lift to prices soon as there are signs that Chinese port stocks are falling. However, we are likely to see effects of this supply-side boost only in a few weeks' time," Shanghai Metals Market analyst Amy Chen said. Tin rose to $19,800 a tonne from $19,700, zinc climbed to $1,892 from $1,868, lead rose to $1,917.50 from $1,902 and aluminium edged up to $1,992 from $1,985. Metal Prices at 0847 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 335.35 6.85 +2.09 334.65 0.21 LME Alum 1984.00 -1.00 -0.05 2230.00 -11.03 LME Cu 7295.00 0.00 +0.00 7375.00 -1.08 LME Lead 1901.50 -0.50 -0.03 2432.00 -21.81 LME Nickel 16905.00 -45.00 -0.27 18525.00 -8.74 LME Tin 19695.00 -5.00 -0.03 16950.00 16.19 LME Zinc 1867.00 -1.00 -0.05 2560.00 -27.07 SHFE Alu 15930.00 55.00 +0.35 17160.00 -7.17 SHFE Cu* 54600.00 1270.00 +2.38 59900.00 -8.85 SHFE Zin 14855.00 170.00 +1.16 21195.00 -29.91 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN

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