Copper futures given boost by upbeat loan data

Chinese copper futures finished the week with moderate gains following the release of promising loan data by the People's Bank of China (PBOC), the central bank.

The most-traded copper contract for February delivery on the Shanghai Futures Exchange (SHFE) jumped by 210 yuan ($33.96), or 0.45 percent, from Thursday, closing at 46,380 yuan per ton Friday. The price was up 300 yuan, or 0.65 percent, week-on-week.

The benchmark three-month copper contract on the London Metal Exchange (LME) rose by 0.43 percent to close at $6,490 per ton Friday. The contract was up 0.53 percent on a weekly basis.

The Friday rise in SHFE copper futures came after the release by the PBOC of positive new loan data, which boosted confidence in the economy amid efforts by the government to offer stimulus measures to support growth.

The PBOC said Friday that Chinese banks issued 852.7 billion yuan in new loans in November, a sharp increase of 56 percent from the previous month and well above market expectations.

Meanwhile, total social financing, a gauge of overall liquidity in the economy, soared 74 percent month-on-month to $1.15 trillion yuan.

In addition, global mining giant BHP Billiton said Thursday that it is shifting its investment focus from iron ore to copper as the group expects faster growth in demand for copper than for iron ore.