LONDON, Jan 30 (Reuters) - Copper prices rose on Tuesday, lifted by hopes that top metals consumer China would roll out more measures to stabilise its economy and stock markets, but weak demand curbed gains.
Three-month copper on the London Metal Exchange (LME) was up 0.9% at $8,633 a metric ton by 1715 GMT after modest gains on Monday.
U.S. Comex copper futures rose 0.8% to $3.91 per lb.
Investor confidence in China was hit by a liquidation order for debt-laden developer China Evergrande, which laid bare the depths of the country's real estate downturn.
"We've seen renewed weakness both in Hong Kong and mainland China in the stock markets; and that's a signal that the confidence that is needed is not there," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"Copper is holding up mostly in anticipation of additional support from the Chinese government."
LME copper has gained 4% since touching a six-week low on Jan. 18, with prices buoyed by mine disruptions that have prompted analysts to change their forecasts to deficits for this year rather than surpluses.
"The market was caught quite short last week, but most of the shorts have been covered. Whether we're going to see some fresh longs in the market depends on what happens in China," Hansen added referring to bets on the future direction of prices.
Reflecting weaker Chinese demand for imported copper is the
Yangshan premium
"The trend for metals is down due to a lack of China's physical demand," one trader said.
Cash LME nickel's discount to the three-month contract
LME benchmark nickel added 0.4% to $16,500 a ton.
In other metals, LME aluminium rose 0.3% to $2,272 a ton, zinc advanced 0.7% to $2,568.50, lead edged up 0.2% to $2,176.50 and tin was down 0.8% at $26,130.
For the top stories in metals, click (Reporting by Eric Onstad Additional reporting by Mai Nguyen in Hanoi Editing by Kirsten Donovan and David Goodman )
