METALS-LME copper hits near 3-week high on dollar pullback, China stimulus hopes

March 6 (Reuters) - London copper prices hit a near three-week high on Thursday, supported by a sharp pullback in the U.S. dollar and hopes for more stimulus from top consumer China to help boost economic growth.

Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.2% at $9,606 a metric ton by 0656 GMT, hitting its highest level since February 14.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 jumped 1.6% to 78,310 yuan ($10,813.31)a ton, a level not seen in more than two weeks.

Market participants are expecting more stimulus measures from Chinese authorities to bolster consumption and cushion the economic impact of an escalating trade war with the United States.

"Base metals rallied in Asian trade on the prospect of further China stimulus measures," said Daniel Hynes, a senior commodity strategist at ANZ Bank.

The dollar index .DXY slipped to a four-month low on Thursday, making greenback-priced commodities cheaper for buyers holding other currencies. USD/

"European defence spending measures are also boosting (metals') growth outlook while simultaneously weakening the U.S. dollar," said Kyle Rodda, a senior financial markets analyst at Capital.com.

The Trump administration's decision to roll back some tariffs is raising hopes that the world will avoid the worst of a trade war, Rodda added.

U.S. President Donald Trump will exempt automakers from 25% tariffs on Canada and Mexico for one month as long as they comply with existing free trade rules, the White House said on Wednesday.

SHFE aluminium SAFcv1 rose 1.2% to 20,855 yuan a ton, zinc SZNcv1 gained 1.4% to 23,975 yuan, nickel SNIcv1 gained 0.3% to 128,520 yuan, lead SPBcv1 advanced 0.5% to 17,405 yuan and tin SSNcv1 firmed 0.5% to 258,010 yuan.

LME aluminium CMAL3 jumped 1% to $2,684 a ton, zinc CMZN3 added 0.6% to $2,896.5, lead CMPB3 was steady at$2,034, nickel CMNI3 climbed 0.6% to $16,000 and tin CMSN3 advanced 0.9% to $31,980.

($1 = 7.2420 yuan )