METALS-Most Shanghai metals edge up, but strong dollar caps gains

By Violet Li and Mei Mei Chu

SHANGHAI, Dec 26 (Reuters) - Most base metals on the Shanghai Futures Exchange (SHFE) gained on Thursday, buoyed by positive macroeconomic news from China. However, a strong dollar index limited the rise.

"Recent fiscal meetings in China have introduced proactive fiscal policies, including raising the budget deficit, to support market expectations of a positive increase in demand for metals," analysts at Jinrui Futures said.

China will raise its budget deficit ratio, intensify fiscal spending and accelerate expenditure in 2025, the finance ministry said on Tuesday.

Furthermore, the country plans to boost fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents and expanding trade-ins for consumer goods, according to the finance ministry's announcement.

Meanwhile, the U.S. dollar index hovered near the two-year high of $108.43 hit last Thursday and was trading at $108.15 at 0138 GMT. This will exert some pressure on copper prices.

A stronger dollar makes it more expensive for other currency holders to buy greenback-priced commodities, thus keeping metals prices under pressure.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 climbed 0.2% to 74,190 yuan ($10,165.66) a ton by 0138 GMT.

SHFE aluminium SAFcv1 dropped 0.2% to 19,850 yuan a ton, while nickel SNIcv1 rose 0.2% to 125,670 yuan, zinc SZNcv1 advanced 1.0% to 25,625 yuan, lead SPBcv1 added 0.1% to 17,405 yuan and tin SSNcv1 gained 0.1% at 245,060 yuan.

The London Metal Exchange (LME) is shut on Thursday for the Boxing Day holiday.

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($1 = 7.2981 Chinese yuan renminbi)

(Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy)

((Violet.Li@thomsonreuters.com;))

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