Shanghai copper falls as econ worries linger

By Manolo Serapio Jr. and Rujun Shen

MANILA/SHANGHAI (Reuters) - Shanghai copper closed weaker, but off two-week lows on Wednesday when talk of a second U.S. government stimulus plan stoked concerns about the fate of the global economy.

Leaders from the Group of Eight major industrial nations will warn against complacency over economic recovery on Wednesday at a world summit that will also tackle trade, climate change and food security.

Talk of another U.S. stimulus plan "shows that there are still problems out there and and that these green shoots that people are looking at have now sort of turned to brown weeds in a way," said broker Ciaran Moore at Halifax Investment Services.

"Fundamentals haven't really changed that much. Everyone says there seems to be a recovery coming but when that will happen is anyone's guess."

Shanghai's benchmark third-month copper futures contract closed down 0.7 percent at 38,990 yuan a tonne, after touching a session low of 38,450 yuan, its weakest in two weeks.

The most-active contract for October delivery eased 0.7 percent to 38,860 yuan a tonne.

"Although Shanghai copper is still falling, the decline is limited. There are buyers waiting for prices to go down, and they'll jump in to buy," said Li Rong, an analyst with Great Wall Futures.

"We are concerned whether speculative money would be tightened. We expect the liquidity in the market to gradually ebb, but it will be a slow process."