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METALS-Shanghai copper drops 5 pct on China concerns

SYDNEY, March 10 (Reuters) - Shanghai copper dropped by its 5 percent daily limit on Monday to its lowest in more than four years after weak Chinese trade data fanned concerns over its metals industry following the country's first domestic bond default last week.

FUNDAMENTALS

* The most-traded May copper contract on the Shanghai Futures Exchange fell 5 percent to 46,670 yuan ($7,600)a tonne by 0130 GMT, its lowest since Sept. 2009.

* Three-month copper on the London Metal Exchange dropped by 1.1 percent to $6,709 a tonne. It earlier slid as low as $6,708 a tonne which was its weakest since June 25, 2013.

* China's exports unexpectedly tumbled in February, swinging the trade balance into deficit and adding to fears of a slowdown in the world's second-largest economy despite the Lunar New Year holidays being blamed for the slide.

* U.S. job growth accelerated sharply in February despite the icy weather that gripped much of the nation, easing fears of an abrupt economic slowdown and keeping the Federal Reserve on track to continue reducing its monetary stimulus.

* China recorded its first domestic bond default as expected on Friday when loss-making solar equipment producer Chaori Solar missed an interest payment, setting a landmark for market discipline in the world's second-largest economy.

* China's total copper imports in the first two months of the year copper, of which China is the world's top buyer, rose 41.2 percent from a year earlier to 915,000 tonnes in January and February, data from the General Administration of Customs showed on Saturday.

* Hedge funds and money managers turned copper markets into a net short in the week to March 4, according to data from the Commodity Futures Trading Commission on Friday.

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MARKETS NEWS

* Asian stocks slipped in early trade on Monday and the dollar stepped back from its recent highs as disappointing Chinese trade data and uncertainty over the crisis in Ukraine kept risk appetite in check.

DATA (GMT)

0745 France Industrial output

0900 Italy Industrial output

0930 Eur zone Sentix index

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Three month LME tin

(Reporting by Melanie Burton; Editing by Ed Davies)