METALS-LME copper rises on weaker dollar and upbeat China data

Updates with mid-session trading

March 3 (Reuters) - London copper rose on Monday, supported by a weaker dollar and improving manufacturing activity in top metals consumer China.

Three-month copper on the London Metal Exchange (LME) CMCU3 gained 0.2% to $9,378 a metric ton by 0654 GMT.

The dollar index .DXY eased 0.3% from a two-week high hit in the previous session. USD/

A weaker dollar makes greenback-priced commodities cheaper for buyers holding other currencies.

China's manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production, an official factory survey showed on Saturday.

China's economic health is crucial for base metals demand because the country is the world's largest consumer and relies heavily on these metals for its vast manufacturing sector.

U.S. President Donald Trump sowed confusion last week when he mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later reaffirmed the Tuesday, March 4 deadline.

He said he would add another 10% tariff on Chinese goods on Tuesday, effectively doubling 10% duties imposed on February 4.

"I think the markets are responding to further rhetoric about U.S. tariffs on base metals and the hope that China's NPC might yield further economic stimulus," said Kyle Rodda, senior financial markets analyst at Capital.com.

China's National People's Congress (NPC), scheduled to meet on March 5, is expected to unveil more stimulus, given the looming tariff war and concerns about slow demand.

LME aluminium CMAL3 was up 0.2% at $2,609.50 a ton, zinc CMZN3 gained 1.2% to $2,826.50, nickel CMNI3 rose 1.2% to $15,625, tin CMSN3 firmed 0.1% to $31,340 and lead CMPB3 rose 0.1% to $1,993.50.

SHFE aluminium SAFcv1 rose 0.1% to 20,670 yuan ($2,834.96) a ton, SHFE copper SCFcv1 firmed 0.1% to 77,060 yuan, zinc SZNcv1 climbed 1% to 23,730 yuan, nickel SNIcv1 eased 0.3% to 126,770 yuan, lead SPBcv1 gained 0.6% to 17,280 yuan and tin SSNcv1 rose 0.3% to 255,940 yuan.

($1 = 7.2911 Chinese yuan)