* Copper loses more ground on China worries, market cautious
* Rising inventories in Asia pressure copper prices (Adds comment, detail)
By Naveen Thukral
SINGAPORE, April 26 London copper slid for asecond session on Tuesday, easing further from last week'sfive-week peak amid doubts about demand in top user China andconcerns over rising Asian inventories.
Three-month copper on the London Metal Exchange hadfallen 1 percent to $4,948 a tonne by 0411 GMT. The most-tradedJune copper contract on the Shanghai Futures Exchange lost 1.8 percent to 37,620 yuan a tonne.
"A weaker U.S. dollar has failed to support base metals;instead rising inventories were weighing on investors' minds,"ANZ said in a research note.
It added that copper inventories in Asian warehouses havejumped 8 percent to 72,675 tonnes, the highest since Jan. 20.
The metal gained nearly 5 percent last week when it toucheda five-week peak of $5,091 as investors returned after seeingsigns of stabilisation in China's economy including inindustrial output, loans and the property sector.
Asian stocks retreated as investors braced for central bankpolicy meetings in the United States and Japan this week. Thedollar index, which tracks the greenback against a basket of sixmajor currencies, slid 0.2 percent to 94.682.
Trading across risk assets is expected to be subdued asinvestors wait for the outcome of the Federal Reserve's two-daymeeting that starts on Tuesday.
A surprise drop in new U.S. home sales data for Marchreleased on Monday supported a view of anaemic U.S. economicgrowth, which may keep the U.S. central bank from raisinginterest rates.
The Fed is expected to hold rates steady at this week'smeeting and markets are pricing in just about a one in fivechance of a hike at the next meeting on June 14-15.
On the technical front, copper is expected to riseto $5,032, as it has found a support around $4,980 per tonne,according to Wang Tao, Reuters market analyst for commoditiesand energy technicals.
Top copper producer Codelco will scale back plans for itsRajo Inca project, intended to extend the mine life of itsSalvador deposit, and an investment decision will be made withintwo years, the company's chief executive said.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin (Reporting by Naveen Thukral; Editing by Joseph Radford)