Major market participant says, as Lunar New Year holiday that will close Chinese markets for a week from February 14 "started to take its effect on volumes".

Many Chinese factories will be closed, the demand for base metals should drop off, it says; adds market still wary of China's stance on monetary policy tightening with further moves to tighten to weigh heavily on market sentiment.

LME 3-month copper lasts up U.S.$40 at U.S.$6,830 per metric ton, aluminium jumps U.S.$43 to U.S.$2,128, zinc gains U.S $22 to U.S $2,167, lead leaps U.S $60 to U.S $2,105, tin rose U.S $380 to U.S.$16,530, while nickel put on U.S $400 to U.S $18,400.

Market participant says base metals stronger on the morning of February 3 as positive economic data from America supported outlook for improved base metals demand, cites January 29's GDP data, manufacturing data on February 1, while weaker USD also helped; says fall in LME copper stocks improved outlook for investors, with decline largest since early July of 2009 but stocks still near highest point in over 6 years.