US markets shut for labor day on Monday Alumina, Alcoa reshape...

• US markets shut for labor day on Monday
• Alumina, Alcoa reshape deal for JV
• Coming up: U.S. unemployment rate Aug at 1230 GMT

(Adds detail; updates prices)

London copper was set for a modest weekly gain on Friday, while lead and zinc carved out new year-to-date peaks as shorts closed positions ahead of a key U.S. jobs report that is likely to dictate short-term direction in metals markets.

The potential for a strong U.S. nonfarm payrolls number - and with it an elevated chance of a Federal Reserve rate hike soon - kept Asian financial markets on edge.

"A quiet day (is expected) ahead of the much anticipated U.S. nonfarm payroll data for August," ANZ said in a note.

"The improved sentiment after the better-than-expected manufacturing data in China should keep commodity markets well supported."

Three-month copper on the London Metal Exchange CMCU3 had edged up 0.3 percent to $4,641.50 a tonne by 0717 GMT, after closing the previous session slightly higher. Prices appear to be forming a floor above $4,600 a tonne, the nine-week low plumbed on Tuesday and were on track for a weekly gain of half a percent.

Relief bloomed in beleaguered metals markets this week after China's manufacturing activity showed a stronger-than-expected revival in August, triggering broad-based shortcovering and outperformance in metals also facing supply constraints.

London zinc CMZN3 and lead CMPB3 struck new 15- and 14-1/2 month highs of $2,350 and $1,950 a tonne, respectively, as mine supply diminishes and amid a pollution crackdown in China.

LME tin CMSN3 hit a new peak since January 2015 at $19,280 a tonne.

Shanghai Futures Exchange lead SPBcv1 rallied more than 5 percent at one point to its highest in two years, building on technical momentum.

The world's major economies meet in China this weekend, needing to mount a realistic defence of the free trade and globalisation they have long championed.

Already China's vice finance minister said industrial overcapacity problems have arisen mainly due to slower global demand, ahead of the summit in Hangzhou.

In encouraging news for metals demand, China's home prices are expected to rise 10 percent this year due to robust demand, a Reuters poll found.

Meanwhile, Alcoa Inc and Alumina Ltd (AWC) have settled a dispute and agreed to reshape their joint venture, removing an obstacle to Alcoa's plan to split into two companies and making its Australian partner a more attractive takeover target.

This comes after China's Zhongwang USA said this week it would buy U.S. aluminum company Aleris Corp , and as the number of mergers in the sector steps up, more evidence that the metals cycle has bottomed out.

PRICES

	Three month LME copper		  CMCU3  
	Most active ShFE copper		 SCFcv1  
	Three month LME aluminium	   CMAL3  
	Most active ShFE aluminium	  SAFcv1  
	Three month LME zinc			CMZN3  
	Most active ShFE zinc		   SZNcv1  
	Three month LME lead			CMPB3  
	Most active ShFE lead		   SPBcv1  
	Three month LME nickel		  CMNI3 
	Most active ShFE nickel		 SNIcv1   
	Three month LME tin			 CMSN3  
	Most active ShFE tin			SSNcv1		  
($1 = 6.6713 Chinese yuan)