(Update prices for Asia market close, adds analyst comment in

paragraphs 3 and 4 and details in paragraph 5.)

By Hongmei Li

SINGAPORE, June 12 (Reuters) - London copper prices rose

on Thursday, although the market expects volatility amid

persistent uncertainty over the U.S-China trade deal.

Three-month copper on the London Metal Exchange was

up 0.4% at $9,683.5 per metric ton by 0706 GMT, while the

most-traded copper contract on the Shanghai Futures Exchange

lost 0.7% to 78,610 yuan a ton ($10,947.40).

"LME and SHFE copper prices have been diverging as China's

domestic demand for copper has shown signs of seasonal

weakening, while LME is being supported by possible U.S. tariffs

on copper imports," a Hangzhou-based metals analyst said.

Copper inventories in SHFE-registered warehouses are

building up but at a slow pace, which is unlikely to pressure

SHFE prices too much, she said.

SHFE copper inventories rose to 107,404 tons in

the week ended June 6, from 98,671 tons in the week ended May

23.

The U.S. and China reached agreement on Tuesday that

restores a trade truce, removing Beijing's export curbs on rare

earths and allowing Chinese students access to U.S.

universities, although markets remain cautious about further

developments.

Meanwhile, the dollar slid after U.S. inflation rose

less than expected in May, suggesting the Federal Reserve could

cut rates soon.

A weaker dollar typically supports metal prices by making

them more attractive to buyers using other currencies.

Among other LME metals, zinc added 0.5% to $2,666

per ton, lead gained 0.4% to $1,995.5, aluminum

advanced 0.2% to 2,521.5, while nickel fell 0.2% to

$15,140, and tin inched 0.1% lower to $32,630.

Among SHFE metals, aluminium gained 1.1% to 20,395

yuan a ton, zinc rose 0.3% to 22,085 yuan, lead

gained 0.3% to 16,890 yuan, while nickel fell

1.2% to 120,000 yuan.

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DATA/EVENTS (GMT)

1230 US Initial Jobless Clm Weekly

1230 US PPI Machine Mfg May

1600 US Federal Reserve issues Quarterly

Financial Accounts of the United States

($1 = 7.1807 Chinese yuan)