BEIJING, Sept 19 (Reuters) – Shanghai copper prices rose sharply on Wednesday, tracking a jump in London in the previous session and hitting a one-month high, while zinc climbed more than 3 percent, as investors shrugged off an escalation in the U.S.-China trade spat. China responded to the latest U.S. tariffs on $200 billion of Chinese goods, levied at an initial 10 percent instead of 25 percent, with tariffs on about $60 billion worth of U.S. goods, as previously planned, but has reduced the levies it will collect on the products. “The imposition of 10 percent tariffs raised some hopes that the intensity of the trade war is easing and that upcoming negotiations may bear some fruit,” ANZ wrote in a note. “The market was also buoyed by reports that China will step up efforts to support domestic demand,” it added. FUNDAMENTALS: * SHFE COPPER: The most-traded copper contract on the Shanghai Futures Exchange rose as much as 2.8 percent overnight to 49,730 yuan ($7,250.22) a tonne, its highest since Aug. 14. It ended 2.6 percent firmer at 49,640 yuan. * LME COPPER: Three-month copper on the London Metal Exchange rallied 0.6 percent to $6,145 its highest since Aug. 29 before trading at $6,121.50 a tonne by 0740 GMT. * ZINC: The metal used to galvanise steel rose as much as 4.2 percent in Shanghai, breaking away from its 20-day moving average to hit 21,665 yuan a tonne, the highest since July 9. LME zinc rose 2.9 percent to $2,416.50 a tonne. * STOCKS: LME zinc stocks are at their lowest since April, whereas ShFE zinc inventories remain barely above a decade low. * ZINC: “The bonded area is basically out of stock and the spot (availability) in Shanghai is gradually decreasing,” says a Chinese zinc trader. “The normal offer for premiums is already above $250 a tonne,” he added. * PREMIUMS: Chinese copper import premiums hit $107.50 a tonne, the highest since October 2015, indicating strong demand for physical metal. Zinc premiums are at an all-time high of $270 a tonne.

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