MUMBAI, Jan 4 (Reuters) - India's copper futures extended gains on Monday to hit a contract high helped by firm demand outlook and strong Asian equities, analysts said. The most-traded February contract MCCG0 was trading 0.68 percent higher at 346.65 rupees per kg at 10:21 a.m., after hitting a contract high of 347.3 rupees in early deals. Japanese stocks led Asian equities higher and the U.S. dollar climbed against major currencies on optimism that U.S. employment figures later in the week will reflect a sustained economic recovery. See [ID:nSGE603020] "It may open firm may continue to trade higher on demand and higher Asian equities," said Aurobinda Prasad, head of research, Karvy Comtrade. Investors are betting on higher copper prices, with demand in Europe and the U.S. expected to recover after strong buying from China helped drive copper's stellar rally last year. "We may see a level of 348 (rupees) in today's trading session," said Kunal Shah of Nirmal Bang Commodities. In other base metals, zinc January MZIF0 was 0.51 percent higher at 119.40 rupees per kg, while lead for January delivery MLDF0 was 0.31 percent higher at 113.75 rupees per kg. (Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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