METALS-Base metals jump on Sino-US trade truce; copper hits near 2-month high

(Adds Shanghai closing prices, updates London prices) HANOI/BEIJING, Dec 3 (Reuters) - Industrial metals rose across the board on Monday, with benchmark London copper hitting a near two-month high, after the United States and China agreed to a ceasefire in a trade dispute that has shaken markets and weighed on metals prices. Washington and Beijing will halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences within 90 days.

The truce "is not substantive, but is already better than market expectations," Helen Lau, an analyst with Argonaut Securities in Hong Kong, wrote in a note. Copper, which has been battered by an uncertain economic outlook for most of 2018 amid the trade row, "may outperform all base and other hard commodities," she added.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange rose as much as 2.5 percent to $6,352 a tonne, its highest since Oct. 4, and was at $6,312.50 as of 0728 GMT. The most-traded January copper contract on the Shanghai Futures Exchange climbed 2.4 percent to 50,790 yuan ($7,333.55) a tonne, the highest since Oct. 15, before closing up 1.3 percent at 50,250 yuan.

* ZINC: The metal used to galvanize steel climbed as much as 6 percent in Shanghai, its biggest intraday jump since July, before ending up 3.8 percent. LME zinc rose 3 percent to a two-week high of $2,617.50 a tonne before easing to $2,574.

* ZINC SPREADS: The premium for cash LME zinc over the three-month price <CMZN0-3> soared to $113 a tonne on Friday, the highest since 1997.

* ALUMINIUM: Shanghai aluminum, which hit a fresh two-year low on Friday, also got a boost from the trade truce, rising as much as 2.9 percent, its biggest intraday gain since April, before closing up 1.5 percent on 13,810 yuan a tonne.

* CHINA: China's factory activity grew slightly in November, a private survey showed, though new export orders extended their decline in a further blow to the sector already hurt by the Sino-U.S. trade frictions.

* USD: The dollar index fell 0.5 percent on easing trade tensions, making dollar-denominated metals cheaper for holders of other currencies and further supporting prices.

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MARKETS NEWS

* Asian shares rallied on Monday after U.S. and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets and battered oil prices.

PRICES

BASE METALS PRICES 0732 GMT Three month LME copper 6317.5 Most active ShFE copper 50240 Three month LME aluminum 1972.5 Most active ShFE aluminum 13805 Three month LME zinc 2576 Most active ShFE zinc 21205 Three month LME lead 1983.5 Most active ShFE lead 18550 Three month LME nickel 11235 Most active ShFE nickel 91780 Three month LME tin 18750 Most active ShFE tin 144690

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 -187.15 LME/SHFE ALUMINIUM LMESHFALc3 -1895.37 LME/SHFE ZINC LMESHFZNc3 -242.61 LME/SHFE LEAD LMESHFPBc3 1464.15 LME/SHFE NICKEL LMESHFNIc3 573.39

($1 = 6.9257 Chinese yuan)

(Reporting by Mai Nguyen; Editing by Subhranshu Sahu and Gopakumar Warrier)