(Updates official prices, adds detail/comment)

By Michael Taylor

LONDON, Sept 3 (Reuters) - Copper rose on Friday to nearfour-month highs as short-covering and falling inventoriessupported ahead of key jobs data from the world's largesteconomy, the United States.

Benchmark copper for three-month delivery on the LondonMetal Exchange traded at $7,645 a tonne from $7,606 at the closeon Thursday and compared with a session high at $7,680.

"Copper has had a good run, we're testing the upside, and wecould run to $7,800," said Robin Bhar, analyst at CreditAgricole. "Of course a lot depends on the non-farm payrolls."

"We are underpinned by stocks still coming off," he added."Demand is probably fairly slack at the moment but the supplyside is driving prices higher."

Prices of the metal, used in power and construction, haverallied about 7 percent in nine days to peak at $7,689 onThursday, its highest level in four months.

Buoying sentiment, data released on Thursday showed asurprise rebound in pending sales of previously owned homes inJuly, as well as a fall in new jobless claims last week in theU.S.

This followed on from firmer manufacturing data in the U.S.and world's top metals consumer China, earlier this week.

"It seems a bit more positive out there across markets,"said an upbeat LME trader. "Recent data is helping the mood."

Highlighting the precarious nature of the global economicrecovery, Japanese companies' spending on plant and equipmentfell at a slower annual rate in April-June than the previousquarter.

But the August U.S. non-farm payroll figures due Friday,expected to show loss of 100,000 jobs, might dampen recoveryhopes raised by this week's positive data.

"It's a difficult one, if not impossible to predict," addedBhar. "The consensus is for a decline of about 100,000 and if itcomes inline with that, we shouldn't see too much movement.

"We've had a few months of really weak data, then this weekit's been better."

LME traders also said the impact from the data on the dollarmay affect industrial metals. A weak U.S. currency makes metalspriced in dollars less expensive for holders of othercurrencies.

Also aiding overall sentiment in recent weeks has been agrowing trend of falling LME inventories. The latest LME data,copper stocks slipped 1,800 tonnes to 397,675 tonnes, havingfallen from 6-1/2 year highs at 555,075 tonnes in mid-February.

Among other metals, aluminium, used in transport andpackaging, traded at $2,155 in LME rings versus $2,108. Themetal earlier touched $2,169, its highest point since Aug. 17.

Aluminium stocks eased 5,375 tonnes to remain near recordlevels above 4.4 million tonnes.

A large portion of those aluminium stocks are tied up infinance deals.

Steel-making ingredient nickel traded at $21,900 in exchangerings from $21,050, while battery material lead was at $2,162from $2,115.

Nickel earlier hit $22,050, a peak not seen since Aug. 19,as analysts cited a combination of fund buying and rising demandfrom Chinese steel mills.

Zinc was untraded in LME rings but last bid at $2,160 atonne from $2,133 and tin was traded at $21,400 a tonne from$21,450.

"Ordinarily we would be expecting today's economics releasesto be lower than consensus, however after the surprisinglystrong ISM, this is far from assured," Deutsche Bank said in anote. "The lack of certainty is likely to keep trading volumeslight as investors sit on the sidelines.

"We are of the view that industrial metals will likely tradein a range over the next couple of quarters."

Metal Prices at 1213 GMT Metal Last Change Percent Move End 2009 Ytd Percent

move#VALUE! LME Alum 2148.00 3.00 +0.14 2230.00 -3.68 LME Cu 7649.00 14.00 +0.18 7375.00 3.72 LME Lead 2157.00 2.00 +0.09 2432.00 -11.31 LME Nickel 21835.00 185.00 +0.85 18525.00 17.87 LME Tin 21250.00 -175.00 -0.82 16950.00 25.37 LME Zinc 2157.00 -17.00 -0.78 2560.00 -15.74 SHFE Alu 15570.00 30.00 +0.19 17160.00 -9.27 SHFE Cu* 59880.00 -40.00 -0.07 59900.00 -0.03 SHFE Zin 17620.00 -65.00 -0.37 21195.00 -16.87** 1st contract month for COMEX copper* 3rd contract month for SHFE AL, CU and ZNSHFE ZN began trading on 26/3/07

(Additional reporting by Nick Trevethan in Singapore)

(Reporting by Michael Taylor; editing by Alison Birrane)