Copper jumps to 16-month high on trade deal optimism

SHANGHAI, Oct 27 (Reuters) - Copper climbed to a 16-month high on Monday, driven by optimism over a potential U.S.-China trade agreement after officials from the world's two largest economies outlined the framework for negotiations ahead of their leaders' discussions.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.78% to trade at 88,420 yuan ($12,413.31) per metric ton, as of 0330 GMT.

It hit 88,620 yuan a ton earlier in the session, refreshing a 16-month high since May 2024.

The benchmark three-month copper CMCU3 on the London Metal Exchange rose 0.94% to $11,065.50 a ton, having touched a 16-month high of $11,076.50 a ton earlier in the session.

Negotiators from both China and the U.S. reached a trade deal framework on the sidelines of the ASEAN Summit on Sunday.

U.S. President Donald Trump and Chinese President Xi Jinping will be meeting on Thursday in South Korea.

The framework will pause steep American tariffs on Chinese goods, U.S. Treasury Secretary Scott Bessent said, adding that he expects Beijing to delay its rare-earth export control regime by a year and revive purchases of U.S. soybeans.

Chinese top trade negotiator Li Chenggang also confirmed the "preliminary consensus" with reporters.

Most other base metals also gained after the framework was announced.

Elsewhere among SHFE base metals, aluminium SAFcv1 ticked upwards 0.24%, zinc SZNcv1 added 0.27%, nickel SNIcv1 rose 0.25%, tin SSNcv1 increased 0.29%, while lead SPBcv1 posted a loss of 0.29%.

Among other LME metals, aluminium CMAL3 gained 0.73%, zinc CMZN3 rose 0.45%, nickel CMNI3 ticked up 0.06%, tin CMSN3 was up 0.27%, while lead CMPB3 was unchanged.