By Anna Stablum Nov. 2 (Bloomberg) -- Copper rose in London as manufacturing expanded at the fastest pace in 18 months in China, the world’s biggest consumer of the metal. An HSBC Holdings Plc purchasing managers’ index of Chinese manufacturing rose to a seasonally adjusted 55.4 from 55 in September. A separate government gauge released yesterday also climbed. The U.S. Institute for Supply Management may say today its manufacturing index advanced in October to the highest level in three years, according to a Bloomberg News survey. “There will be a lot of focus on the ISM manufacturing,” Daniel Brebner, an analyst at Deutsche Bank AG in London, said by phone. The Chinese data “all look quite positive. It will support.” Copper for three-month delivery rose as much as $79, or 1.2 percent, to $6,559 a metric ton on the London Metal Exchange and was at $6,515 at 10:12 a.m. local time. Prices have dropped 3.2 percent from a 13-month high of $6,732 on Oct. 26. December- delivery copper gained 0.4 percent to $2.9665 a pound on the New York Mercantile Exchange’s Comex unit. Prices also climbed as the dollar weakened, making metals denominated in the currency cheaper for holders of other monies. The Dollar Index, a six-currency gauge of the greenback’s performance, fell as much as 0.3 percent. Interest Rates China’s government is spending $586 billion to stimulate the local economy, helping to drive copper imports to record levels in 2009’s first half and prices to double. Still, investors have become more cautious after Australia and Norway raised interest rates, according to John Meyer, head of research at Fairfax IS in London. “It is now seen that government stimulus boosted economic recovery, but it is not clear whether growth will continue without massive funds inflow,” he said today by e-mail. The ISM manufacturing index rose to 53 in October, the highest level in three years, according to the median forecast of 62 economists surveyed by Bloomberg News. The figures are due at 3 p.m. London time. Among other LME metals for three-month delivery, aluminum was unchanged at $1,908 a ton, zinc gained 0.8 percent to $2,177 a ton, and lead slid 0.7 percent to $2,289 a ton. Tin was unchanged at $14,700 a ton, and nickel fell 0.6 percent to $18,150 a ton. To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net

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