Copper led the rest of the base metals complex higher with a gain of 1.4%, while tin was the laggard with a rise of 0.1%.
The most-traded may copper contract on the SHFE climbed to 49,660 yuan ($7,896) per tonne as of 10.30am Shanghai time, up by 660 yuan per tonne from Monday’s close.
Investors’ appetite for riskier assets picked up after fears of an escalation in the trade tensions between the US and China eased, with base metals prices supported by the renewed positivity in the market.
“Although the US tariff risk to global trade remains elevated and with the Chinese yet to respond, stock markets staged a recovery across the board. Positive comments from the US treasury secretary Mnuchin over the weekend that agreement can be reached with China,” Sucden Financial Research noted late on Monday.
All major US equity indices closed over 2.5% stronger on Monday, more than reversing the sharp losses recorded last Friday, aided by the positive mood after Mnuchin expressed optimism that the US can reach an agreement with China that will forestall the need to impose trade tariffs.
The dollar weakened in response to the risk positive mood seen in US equities markets, which further underpinned base metals prices.
The dollar index hit a low of 88.98 on Monday – its lowest since February 19. The index was slightly firmer at 89.1 as of 10.56am Shanghai time, but remains in relatively low ground.
The strength in Asia follows a positive performance by the base metals traded on the London Metal Exchange on Monday, where the complex, with the exception of copper, ended the day higher. Base metals prices
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