SYDNEY, Nov 1 (Reuters) - Nickel rocketed to its daily limit in early trade on Wednesday, tracking overnight gains in London markets after the sector turned positive on new demand from electric vehicle battery manufacturers.
ANZ Bank commodities specialists noted the market was becoming increasingly confident about its place in the electric car movement, with producers and traders at the London Metal Exchange Week annual gathering speaking positively about the growth in demand expected from this sector.
UBS issued a client report designating nickel among its top commodity picks over the next two to five years "due to the game-changing opportunity from electric vehicles, a new source of demand."
* Three-month nickel on the London Metal Exchange was up 1.8 percent to $12,518 a tonne by 0147 GMT, building on a 5 percent gain overnight. The contract is at its highest price since mid 2015.
* The most-traded nickel contract on the Shanghai Futures Exchange stood 6 percent higher, its daily limit under trading rules, at 99,340 yuan($14,966.70)a tonne, the highest in nearly 11 months.
* SHFE LEAD, ZINC: ShFE lead and zinc also posted strong advances, up 2.8 and 2.4 percent, in line with firmer domestic steel prices.
* DOLLAR UP: The dollar edged higher on Wednesday, as investors awaited the outcome of the U.S. Federal Reserve's two-day policy meeting later in the session for clues about future tightening.
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* Asian shares looked set to extend their gains into a fourth straight day on Wednesday on the back of solid economic growth, while oil prices were on a bull run on hopes of an extension of output cuts by major oil producers.
DATA/EVENT AHEAD (GMT) 1100 U.S. MBA Mortgage Applications survey weekly
1215 U.S. ADP National Employment Oct 1345 U.S. Markit Mfg PMI Final Oct 1400 U.S. ISM Manufacturing PMI Oct
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
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.6374 Chinese yuan renminbi)
(Reporting by James Regan; Editing by Vyas Mohan)