By Mai Nguyen
SINGAPORE, March 17 (Reuters) - London copper prices edged up on Tuesday from a 40-month low hit in the previous session, on hopes the U.S. Federal Reserve's policy measures could boost long-term demand for metals.
Three-month copper on the London Metal Exchange (LME) was up 0.6% at $5,320.50 a tonne by 0702 GMT, having fallen to its lowest since November 2016 on Monday.
"(The) Fed's latest cut in interest is a very strong liquidity injection. Generally a low interest environment in longer run brings base metal business cycle back," said a Singapore-based metals trader, referring to the U.S. Federal Reserve.
The U.S. central bank cut interest rates to near zero on Sunday and pledged to expand its balance sheet by at least $700 billion in the coming weeks, but that did little to calm investor panic over the deepening economic hit from the virus.
"After one day of panic selling, some market participants start to expect a rebound, especially Asian traders who have witnessed the effective control in countries like China, Singapore and South Korea," the trader added.
LME nickel advanced 1.8% to $12,145 a tonne, zinc rose 0.2% to $1,946 a tonne, lead fell 1.3% to $1,704 a tonne, tin decreased 1.1% to $15,130 a tonne and aluminium edged down 0.5% to $1,666.50 a tonne.
* STIMULUS: Australia, Canada and New Zealand recently announced new measures to help arrest the economic impacts of the fast-spreading coronavirus.
* HYUNDAI: Hyundai Motor's China domestic plant sales in February dropped 97% from a year ago.
* OYU TOLGOI: Work at Rio Tinto Ltd's Oyu Tolgoi copper-gold mine in Mongolia has slowed because of government measures against the coronavirus.
* SHFE PRICES: The most traded nickel contract on the Shanghai Futures Exchange (ShFE) fell 0.7% to 99,000 yuan ($14,145.08) a tonne, zinc eased 0.4% to 15,660 yuan a tonne, while tin dropped 3.3% to 123,510 yuan a tonne.
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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
ARBS ($1 = 6.9989 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Aditya Soni)