(Updates prices to Asia market close)

By Lucas Liew

Aug 27 (Reuters) - Copper fell on Wednesday as a firmer

dollar weighed on prices, while concerns over sluggish

industrial activity in China added to the cautious tone.

The three-month contract on the LME edged down 0.21%

to $9,816 per metric ton by 0706 GMT, while the most-traded

copper contract on the Shanghai Futures Exchange eased

0.34% to 79,190 yuan ($11,071.03) a ton.

The dollar index rose 0.2% to 98.47, following U.S.

President Donald Trump's move to fire Federal Reserve Governor

Lisa Cook, which renewed investor worries about the central

bank's independence.

A stronger U.S. dollar makes greenback-priced metals more

expensive for holders of other currencies, which can dampen

demand and weigh on prices.

Meanwhile, China's industrial profits declined for a third

straight month in July, as businesses grappled with weak demand

and ongoing factory-gate deflation.

Still, Chinese fabricators have indicated a recent uptick in

export orders. Export-driven demand was strong in the first half

of the year, as manufacturers boosted output ahead of U.S.

tariffs, but supplies dried up as the levies came into effect.

Any stabilisation in demand amid elevated trade tensions bodes

well for the sector in the short term, said analysts from ANZ.

Elsewhere, Indonesian sovereign wealth fund Danantara plans

to access $8.3 billion in investment funds in 2025 to develop a

nickel processing hub in partnership with Chinese battery and

mineral recycler GEM.

Indonesia is the world's largest nickel producer.

Among other London metals, aluminium edged 0.3%

lower to $2,630 a ton, nickel lost 0.16% to $15,260,

lead lost 0.05% to $1,987, and zinc dipped 0.59%

to $2,797, while tin climbed 0.42% to $34,340. .

SHFE aluminium increased 0.39% to 20,810 yuan,

nickel gained 1.17% to 121,760 yuan, tin

climbed 0.73% to 271,320 yuan, and zinc rose 0.02% to

22,310 yuan, while lead dipped 0.15% to 16,890 yuan.

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($1 = 7.1529 Chinese yuan)