UPDATE 1-METALS-Copper struggles as dollar hovers near five-month peak

(updates prices) MANILA, May 16 (Reuters) - London copper futures struggled to recover on Wednesday after a two-day slide as the U.S. dollar hovered near a five-month high versus a basket of major currencies following a surge in Treasury yields. Three-month copper on the London Metal Exchange edged up 0.4 at $6,838 per tonne by 0730 GMT. Prices of base metals could stay trapped in narrow ranges, said INTL FCStone consultant Edward Meir, with the exception of nickel given falling stockpiles of the metal on the London Metal Exchange. "A stronger dollar and trade uncertainties remain prevailing negatives, but given that all six metals are expected to be in deficit this year, we do see an element of underlying support for the group as a whole," Meir wrote in a report. Also weighing on risk appetite was news that North Korea canceled high-level talks with Seoul, denouncing military exercises between South Korea and the United States, breaking from several months of easing relations on the peninsula.

SHANGHAI COPPER: The most-traded July copper contract on the Shanghai Futures Exchange slipped 0.5 percent to 51,020 yuan ($8,010.17) a tonne. DOLLAR: The dollar index against a group of major currencies was little changed at 93,233, not far from Tuesday's peak of 93.457, its highest since Dec. 22. A firmer greenback makes dollar-denominated assets more expensive for holders of other currencies. SHANGHAI EXCHANGE: The Shanghai Futures Exchange said it will launch China's first real-time platform for trading physical commodities from copper to chemicals, as it seeks to improve transparency and challenge rivals in the global futures market. CHINA DATA: China's new home prices rose 0.5 percent in April from a month earlier, compared with an increase of 0.4 percent in March. LITHIUM: China's Tianqi Lithium is nearing a deal to buy a 24 percent stake in Chile's Sociedad Quimica Y Minera, one of the world's biggest lithium producers, for about $4.3 billion. MINING: Rio Tinto CEO Jean-Sebastien Jacques said resource companies needed to build "the United Nations of the mining industry" to tackle rising resource nationalism and cost inflation. U.S.-CHINA TRADE: The United States is seeking to make a trade deal with China, White House economic adviser Larry Kudlow said as bilateral talks between the world's two economic powerhouses resume in Washington this week. ASIAN SHARES: Asian markets fell after Pyongyang called off talks with Seoul, throwing a major U.S.-North Korean summit into question, and a spike in the U.S. 10-year Treasury yield to a seven-year high knocked sentiment on Wall Street. OTHER METALS: LME zinc gained 0.6 percent to $3,080 a tonne and nickel rose 0.6 percent to $14,515. In Shanghai, aluminum rose 0.6 percent to 14,790 yuan per tonne and zinc advanced 0.6 percent to 23,780 yuan. GMT 0730

Three month LME copper 6836 Most active ShFE copper 51020 Three month LME aluminum 2334 Most active ShFE aluminum 14790 Three month LME zinc 3079.5 Most active ShFE zinc 23780 Three month LME lead 2368 Most active ShFE lead 19375 Three month LME nickel 14490 Most active ShFE nickel 107740 Three month LME tin 20840 Most active ShFE tin 145700 LME/SHFE COPPER LMESHFCUc3 339.86 LME/SHFE ALUMINIUM LMESHFALc3 -2570.04 LME/SHFE ZINC LMESHFZNc3 496.62 LME/SHFE LEAD LMESHFPBc3 310.94 LME/SHFE NICKEL LMESHFNIc3 -2148.2

($1 = 6.3694 Chinese yuan renminbi)

(Reporting by Manolo Serapio Jr.; Editing by Sunil Nair and Vyas Mohan)