Copper jumped the most in 11 months after an earthquake in Chile cut production in the world’s biggest producer. Stocks rose, oil climbed above $80 a barrel and currencies of commodities producers strengthened.
The May-delivery copper contract gained as much as 20.3 cents, or 6.2 percent, to $3.4870 a pound at 12:20 p.m. in Tokyo, the largest intraday gain for the most-active futures since April.
Chile’s 8.8 magnitude earthquake struck Feb. 27, disrupting mines a day after the U.S. raised its fourth-quarter economic growth estimate to a six-year high of 5.9 percent. In China, the world’s biggest copper user, Premier Wen Jiabao said policy makers need to strike a balance between maintaining “stable and relatively fast” growth and managing inflation. The yen fell versus the euro as speculation European governments will rescue debt-laden Greece cooled demand for safe-haven investments.
“Risk money is flowing into commodities such as crude oil and nonferrous metals after the earthquake,”
Codelco, the world’s largest copper producer, said it will meet supply contracts after power cuts caused by the temblor forced the company and rivals such as Anglo American Plc to halt mine operations. The company resumed operations at its 381,000 ton-a-year El Teniente underground mine in central Chile and said it may restart production “in the coming hours” at its 219,554 ton-a-year Andina mine.
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