(Adds analyst comment, changes dateline, updates prices)
By Polina Devitt
LONDON, Oct 18 (Reuters) - Copper prices rose on Friday,
supported by new measures to boost liquidity in the Chinese
stock market and expectations that more stimulus tools were
coming from the top metals consumer after it released mixed
economic data.
Three-month copper on the London Metal Exchange rose
0.7% to $9,583 per metric ton by 1020 GMT. The contract touched
the lowest since Sept. 23 on Thursday and is heading for the
third consecutive week of decline.
China's economy grew at the slowest pace since early 2023 in
the third quarter and its property sector continued to show
sharp weakness, even though consumption and industrial output
figures for September beat forecasts.
At the same time, China's central bank kicked off two
funding schemes on Friday that will initially pump as much as
800 billion yuan ($112 billion) into the stock market and urged
swift adoption of financial policies to support capital markets,
boosting investor sentiment.
"People are a bit puzzled with what is going with China's
economy because there are certain parts of it which are doing
well such as the electronic sector and other parts which are
doing badly," said Dan Smith, head of research at Amalgamated
Metal Trading.
The property and the construction markets are still weak,
adding pressure on copper, used in power and construction, he
said.
"So, China is basically releasing mini bazookas to stop
things from getting worse, and it is quite difficult to trade
this," Smith said.
Industrial metals will struggle to see a long-term move
higher until the market sees signs of a sustainable recovery and
economic growth in China, said Ewa Manthey, a commodities
analyst at ING.
LME aluminium rose 0.8% to $2,572.50 a ton, tin
climbed 1.0% to $31,490, zinc edged up 0.4% to
$3,064, lead increased 0.2% to $2,072.50, while nickel
fell 0.4% to $16,925.