HANOI, Feb 9 (Reuters) - London copper hit a one-month high on Tuesday on U.S. stimulus hopes, tight supplies and a weaker dollar that made greenback-priced metals cheaper to holders of other currencies.
Three-month copper on the London Metal Exchange CMCU3 rose as much as 1.1% to $8,126.50 a tonne, its highest since Jan. 8, before easing to trade at $8,089.50 a tonne at 0806 GMT, still up 0.7%.
The most-traded March copper contract on the Shanghai Futures Exchange SCFcv1 closed 1.7% higher at 59,570 yuan ($9,236.95) a tonne, having hit its highest in more than three weeks at 59,720 yuan a tonne.
The dollar .DXY languished near its lowest in a week, while the United States prepared to pass a potential $1.9-trillion stimulus package in a few weeks.
"(We) have a weaker U.S. dollar, stimulus hopes, tight markets and China reiterating they will manage to support their economy while still tightening liquidity - what is there not to like?" said commodities broker Anna Stablum of Marex Spectron.
Instead of increasing, as they usually do in the run-up to the Lunar New Year, copper stocks in China have dropped to near decade lows on robust demand from factories that are maintaining high operating rates over the usually slow holiday period.
LME aluminium CMAL3 rose 0.5% to $2,039 a tonne, nickel CMNI3 advanced 1.3% to $18,400 a tonne and zinc CMZN3 increased 1% to $2,677.50 a tonne.
SHFE aluminium SAFcv1 ended 1.2% higher at 15,865 yuan a tonne and nickel SNIcv1 gained 1.5% to 135,250 yuan a tonne, while tin SSNcv1 dropped 1.6% to 163,460 yuan a tonne.
* Demand for aluminium is extending its recovery so far this year despite a second wave of COVID-19 lockdowns, an executive at Russian aluminium producer Rusal 0486.HK said.
* Peru's copper production plunged 12.5% to 2.15 million tonnes in 2020 due to coronavirus-related restrictions that hammered output in the world's second-largest producer of the red metal.
