Copper rises on positive China manufacturing news

<p>Copper has climbed on the London Metal Exchange thanks to China’s improved manufacturing output.</p>

Copper has made gains on the London Metal Exchange this afternoon (January 25th), after official figures revealed China's factory sector output is gaining pace.

HSBC revealed that manufacturing in the world's second-largest economy is recovering after a slowdown in production last year.

The bank's purchasing managers' index (PMI) was 51.9, compared to the 51.5 reading in December, which indicates the sector's activity is speeding up.

Furthermore, the Chinese economy expanded by 7.9 per cent in the fourth quarter of 2012 after slowing in the previous seven periods, according to government data.

"Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months," said chief China economist at HSBC Qu Hongbin.

At 16:25 GMT, Copper Cash Official appreciated by 0.3 per cent to $8059.75 per tonne, while aluminium, lead, tin and zinc all gained ground on the metal exchange too.

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