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METALS-London copper hits over 1-wk high on strong China manufacturing

MELBOURNE, April 3 (Reuters) - London copper climbed to a more than one-week high on Tuesday, finding support from stronger-than-expected manufacturing growth in top metals user China, although worries over an escalating trade spat between Beijing and Washington kept the gains constrained.

FUNDAMENTALS

* London Metal Exchange copper jumped by 1 percent to $6,777 a tonne by 0136 GMT, having peaked at $6,802 a tonne, its highest since March 22. Prices clawed back above the 200-day moving average for the quarter ended on Friday, which rescued prices from coming under further technical selling pressure. The London Metal Exchange was closed on Friday and Monday for the Easter holiday.

* Shanghai Futures Exchange copper eased 0.1 percent to 50,230 yuan ($7,992) a tonne.

* CHINA OFFICIAL PMI: Growth in China's manufacturing sector picked up more than expected in March as authorities lifted winter pollution restrictions and steel mills cranked up production as construction activity swings back into high gear.

* CHINA CAIXIN: Among smaller to mid-size firms, China's manufacturing activity expanded at its weakest pace in four months last month as export demand faltered, prompting companies to shed staff more quickly as they looked to cut costs.

* TARIFFS: China has increased tariffs by up to 25 percent on 128 U.S. products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world's biggest economies in response to U.S. duties on imports of aluminum and steel.

* U.S. ECONOMY: U.S. factory activity slowed in March amid shortages of skilled workers and rising capacity constraints, but growth in the manufacturing sector remains underpinned by strong domestic and global economies.

* COPPER SUPPLY: In a signal of plentiful copper mine supply, China's top copper smelters on Friday lowered their floor treatment and refining charges (TC/RCs) for copper concentrate by 10.3 percent for the second quarter of 2018.

* MORE COPPER: Sumitomo Metal Mining Co Ltd, Japan's second-largest copper smelter, said on Monday it planned to increase its refined copper output in the financial year that started on April 1 by 4.6 percent from a year earlier.

* EVEN MORE COPPER: Chile's state copper company, Codelco , said on Thursday it produced 1.734 million tonnes of copper in 2017, its second highest output ever, despite persistently low ore grades at its aging mines.

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MARKETS NEWS

* Asian stocks extended a global selloff and the yen rose on Tuesday as investors fled for safety as an escalating trade spat between the United States and China and a renewed slump in tech shares such as Amazon.com sapped investor confidence.

DATA/EVENTS

PRICES BASE METALS PRICES

Three month LME copper 6793.5 Most active ShFE copper 50310 Three month LME 2024.5

aluminum

Most active ShFE 14005

aluminum

Three month LME zinc 3281.5 Most active ShFE zinc 24875 Three month LME lead 2401 Most active ShFE lead 18825 Three month LME nickel 13510 Most active ShFE nickel 100320 Three month LME tin 21315 Most active ShFE tin 145540

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 685.6 LME/SHFE ALUMINIUM LMESHFALc3 -716.77 LME/SHFE ZINC LMESHFZNc3 366.4 LME/SHFE LEAD LMESHFPBc3 118.06 LME/SHFE NICKEL LMESHFNIc3 72.72

($1 = 6.2850 Chinese yuan)

(Reporting by Melanie Burton; Editing by Subhranshu Sahu)