METALS-Copper, lead, zinc rise on recovery prospects

* Mkt braces for U.S. non-farm payrolls report

* Zinc hits 13-1/2 month high

* Lead hits 16-month high on supply worries

(Adds comment/details, changes dateline from SHANGHAI)

LONDON, Sept 4 - Copper rose on Friday while zinc and lead hit multi-month peaks as stronger equities and positive U.S. data enforced the view that the global economy is recovering, and a weaker dollar lent support.

But gains were capped ahead of a key U.S. August non-farm payrolls report due at 1230 GMT that should shed more light on the outlook for the global economy and for metals demand.

Copper for three-months delivery on the London Metal Exchange traded at $6,325 a tonne at 0937 GMT from a close of $6,255 on Thursday. Prices of the metal used in power and construction are down 2.7 percent this week, snapping seven weeks of gains.

"Sentiment is cautiously optimistic. If you focus on China there are still some positives .... (and) the weaker dollar and stronger equities are clearly supportive," said David Wilson, director of metals research at Societe Generale.

But he added: "There's some concern about payrolls, there's lots of talk saying employment will lag the rally."

A Reuters survey forecast 225,000 jobs were lost in August compared with a loss of 247,000 jobs in July.

Stock markets in Europe and Asia were higher on Friday while the dollar weakened slightly, making dollar-priced metals cheaper for non-U.S. investors.

Commodities have been tracing equities for much of this year, looking to company performance to signal a better demand outlook for raw materials.

On Thursday, U.S. stock markets ended higher after stronger-than-expected retail sales data. The gains snapped a four-day losing streak that weighed on metals this week.

Copper prices have more than doubled in the year to date, mainly due to record imports from China, the world's biggest copper consumer, strong speculative interest and macro-economic data signalling a global recovery from recession.

LEAD, ZINC SURGE

Zinc, which has been trailing other metals recently, soared to a 13-1/2 month peak on the back of surging lead prices and fears China might close down zinc smelters next. "The Chinese government is aiming to close down older, more polluting production of all metals, people are beginning to wonder whether we'll start to see zinc smelter closures," said Gayle Bery, an analyst at Barclays Capital.

"Also, people are becoming more optimistic on the zinc demand outlook ... (but) there's certainly supply risks to zinc, we've seen a number of restarts and the risk of further restarts could cap prices and probably still will."

Zinc was at $1,974 a tonne from $1,893, having earlier hit $1,989.75, its highest since mid-July last year. Sister-metal lead was at $2,360 from $2,280, having earlier touched $2,387, its highest since early May last year.

Lead is on course for a 24 percent gain over the last two weeks, with supply fears growing after the Chinese authorities, spooked by recent lead poisoning incidents, shut down polluting smelters.

For an insight on lead pollution from Reuters columnist Andy Home click on: Aluminium was at $1,860.00 a tonne against $1,852 amid news some Japanese buyers have agreed to pay a premium of $115 per tonne for primary aluminium ingots to be supplied in October-December, up more than 50 percent from the third quarter.

Among other industrial metals, tin was at $14,455 from $14,450, having earlier hit a 2-1/2 week high at $14,600, while nickel was at $18,245 from $18,200.

Metal Prices at 0942 GMT Metal Last Change Percent Move End 2008 Ytd Percent

move COMEX Cu 286.25 1.90 +0.67 139.50 105.20 LME Alum 1860.00 8.00 +0.43 1535.00 21.17 LME Cu 6322.00 67.00 +1.07 3060.00 106.60 LME Lead 2351.00 71.00 +3.11 999.00 135.34 LME Nickel 18125.00 -75.00 -0.41 11700.00 54.91 LME Tin 14400.00 -50.00 -0.35 10700.00 34.58 LME Zinc 1968.00 75.00 +3.96 1208.00 62.91 SHFE Alu 15025.00 125.00 +0.84 11540.00 30.20 SHFE Cu* 49530.00 710.00 +1.45 23840.00 107.76 SHFE Zin 15685.00 575.00 +3.81 10120.00 54.99 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07