Reuters reported that Shanghai copper hit its daily upper trade limit of CNY 58,780 after Greece and Italy appointed new leaders and seem on track to roll out austerity measures to avert a euro zone and global financial meltdown.

Japan's economy also rebounded as expected in the Q3 from a recession triggered by a devastating March earthquake on robust exports and consumption.

The most active January copper contract on the Shanghai Futures Exchange resumed trading shortly after hitting its limit up, paring CNY 420 to CNY 58,360 by its midday close. Three month copper on the London Metal Exchange rose 3.2% to USD 7,884 per tonne by 0350 GMT after rising 2.2% previously.

Mr Zhang Ao analyst of Minmetals Futures said that "Today's lift in copper futures prices is mostly due to the positive news out of Italy and Greece over the weekend."

The Italian Senate approved a new budget law clearing the way for approval of the package in the lower house on Saturday and the formation of an emergency government to replace that of Prime Minister Silvio Berlusconi.

In Athens, Mr Lucas Papademos former European Central Bank policymaker was sworn in as Greek prime minister after days of political wrangling and tasked with meeting the terms of a bailout plan to avert bankruptcy.

Asian stocks rose in response while the most active Shanghai February zinc contract soared above 5%. Meanwhile, Japan's economy grew 1.5% in July to September from the previous quarter ending nine months of contraction.

(Sourced from Reuters)