Recasts, adds details, updates prices

By Mai Nguyen

Nov 8 (Reuters) -Base metals prices in London were largely down on Friday after the scale of policy support from top consumer China turned out below market expectations.

Three-month copper on the London Metal Exchange (LME) CMCU3 fell 2.3% to $9,443 per metric ton by 0810 GMT, aluminium CMAL3 shed 1.4% to $2,656 a ton and nickel CMNI3 dropped 1.2% to $16,400.

LME zinc CMZN3 decreased 1.5% to $3,006, lead CMPB3 eased 0.2% to $2,033.50 and tin CMSN3 declined 1.2% to $31,440.

China will allow local governments to issue 6 trillion yuan ($836.83 billion) in bonds to swap for off-balance sheet or "hidden" debt over three years, a Chinese official said on Friday.

"The 6 trillion announced today to immediately address and resolve local debt compared to the initial 12 trillion expected has seen markets sliding," said a trader.

"Although, there has been an additional 4 trillion announced, arranged to be split over a period of 5 years, which makes the lump sum payout only being half of what market was pricing in from last night," the trader added.

The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed up 1.5% to 77,100 yuan ($10,753.29) a ton amid hopes of a strong stimulus. The SHFE was closed before the announcement was made.

SHFE aluminium SAFcv1 climbed 2.3% to 21,690 yuan a ton, nickel SNIcv1 jumped 2.9% to 129,580 yuan, zinc SZNcv1 advanced 0.4% to 25,025 yuan, lead SPBcv1 increased 0.5% to 16,890 yuan, and tin SSNcv1 climbed 0.9% to 260,760 yuan.

The better-than-expected data from China, where exports grew at the fastest pace in more than two years in October and the rising unwrought copper imports cushioned metals prices this week.

Falling copper inventories in SHFE warehouses also pointed to improving demand.

On a weekly basis, London copper was set for a loss due to the disappointment in stimulus and amid concerns that Donald Trump's U.S. presidential win could mean more trade frictions that will dampen growth and metals demand.

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($1 = 7.1699 yuan)

Reporting by Mai Nguyen in Hanoi; Editing by Janane Venkatraman and Sumana Nandy

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