(Updates with closing prices)By Eric OnstadLONDON, Nov 29 (Reuters) - Copper and other metals extendedgains on Thursday as investors bought riskier assets onspeculation U.S. interest rates may be near a peak, but tradewas thin ahead of Chinese economic data and the G20 summit.Most metals closed higher on Wednesday after the chairman ofthe U.S. Federal Reserve suggested the central bank could benearing an end to its three-year rate tightening cycle, giving aboost to global share markets. Many investors were on the sidelines, however, ahead of
trade talks between U.S. President Donald Trump and ChinesePresident Xi Jinping on Saturday during the G20 summit inArgentina."I don't think there's any conviction in the market on whatthe outcome would be," said analyst Carsten Menke at Julius Baerin Zurich.Three-month copper on the London Metal Exchange wasup 0.2 percent to $6,212 a tonne in closing open outcry trading,after rising 1.3 percent in the previous session.
While trade tensions have hit market sentiment, moreimportant for the fundamentals of the metals markets is theslowdown in top metals consumer China, Menke added.
* CHINA PMI: Data on Friday is expected to show China'sfactories struggled to grow for a second straight month inNovember. The official manufacturing Purchasing Managers' Index (PMI)is expected to come in at 50.2, just above the neutral mark of50."It's expected to be unchanged, but if it falls below 50, itwould be another hit to sentiment," Menke said.
* INDONESIA: Also supporting copper was news that PTSmelting, the Indonesian copper smelting unit of Japan'sMitsubishi Materials , had declared force majeure.
* SPREADS: Tight availability for nearby supplies of copperand zinc were also boosting those markets, evidenced in spreads,traders said.The premium of cash copper over the three-month contract has risen to $42.50 a tonne from $14 two weeks ago,whilethe premium of cash zinc over three-month zinc has gained to $93 a tonne from $56.50 since Nov. 13.
* ZINC STOCKS: LME inventories of zinc hit a fresh low sinceFebruary 2008, having halved since mid-August .LME three-month zinc gained 0.7 percent to finish at$2,470 a tonne.
* ALUMINIUM: Norwegian metals maker Norsk Hydro said it expected global primary aluminium demand growth to slownext year. LME aluminium added 0.4 percent to end at $1,940 atonne.
* NICKEL TECHNICALS: Nickel is rebounding, partly due to
oversold conditions, but further downside was possible,St?(C)phanie Aymes, head of technical analysis at Societe Generale,said in a note. "In case of further bearish momentum, $10,215and $9,707 will be next objectives."
* PRICES: Nickel climbed 2.4 percent to close at$11,055 a tonne, lead rose 0.3 percent to $1,931, whiletin gained 1.6 percent to $18,525.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top base and precious metals analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in Beijing; Editing by MarkPotter and Jan Harvey)