* Dollar stronger after jobs data
* Copper extends 2.4 percent Q1 loss
* Analysts positive on copper longer-term
(Updates prices, adds data)
By Sue Thomas and Rebekah Curtis
LONDON, April 1 (Reuters) - Copper hit a two-week low on Friday, extending the first-quarter's 2.4-percent loss as a lull in Chinese demand worried investors, and as strength in the dollar eclipsed economic optimism supported by U.S. jobs data.
Three-month copper on the London Metal Exchange was at $9,306 a tonne at 1412 GMT and hit a session low of $9,279.75, from $9,430 at the close on Thursday. In the first three months of the year it recorded its first quarterly loss since June.
Base metals have fallen this year on softness in Chinese demand, as well as turmoil in the Middle East and North Africa which has boosted oil prices and stoked inflation concerns.
"People are still nervous," Charles Kernot, an analyst at Evolution Securities, said. "It's still a very fragile market."
U.S. employment recorded a second straight month of solid gains in March and the jobless rate fell to a two-year low of 8.8 percent, marking a decisive shift in the labour market that supported sentiment towards the economy and metals demand.
"The survey today should help things," Kernot added.
Though upbeat for sentiment, the data also propelled the dollar higher versus a basket of major currencies, removing some support from metals by making them costlier for non U.S. investors.
Other data was less positive, showing the U.S. manufacturing sector grew at a marginally slower pace in March, while U.S. construction spending fell more than expected in February to its lowest level since October 1999.
Japan's nuclear and humanitarian crisis is in its third week, with radiation still leaking from a crippled nuclear power plant, thousands of homeless people struggling to rebuild their lives, and little hope exists of a quick resolution to either.
STOCKPILES
Hefty copper stockpiles in China have slowed demand from the world's top metals consumer, compounding concerns about weak physical demand and keeping prices in a tight range. Imports of refined copper fell 36 percent to a 27-month low in February, recent data showed.
Latest data shows LME stocks of copper fell 1,000 tonnes to total 438,850 tonnes, but have been steadily climbing since December.
Longer-term analysts are still positive about the outlook for copper, especially because there is a deficit.
"In the short term supply is going to be fairly tight," said Peter Archbold, European head of basic materials at Fitch Ratings. "I'm very positive about copper this year. It could get closer to $11,000 a tonne due a deficit in supply."
Aluminium was at $2,607 a tonne, from $2,645 at the close on Thursday. Zinc was $2,327 a tonne from $2,362 at the close on Thursday and battery material lead was at $2,676.75 a tonne from a close of $2,695.
Tin was $31,375 from $31,800 a tonne. Nickel was at $25,400 from $26,095 a tonne. Metal Prices at 1417 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2010 Ytd Percent
move COMEX Cu 422.50 -8.25 -1.92 444.70 -4.99 LME Alum 0.00 -2645.00 -100.00 2470.00 -100.00 LME Cu 0.00 -9430.00 -100.00 9600.00 -100.00 LME Lead 0.00 -2695.00 -100.00 2550.00 -100.00 LME Nickel 25550.00 -545.00 -2.09 24750.00 3.23 LME Tin 31355.00 -445.00 -1.40 26900.00 16.56 LME Zinc 2330.00 -32.00 -1.35 2454.00 -5.05 SHFE Alu 16755.00 -20.00 -0.12 16840.00 -0.50 SHFE Cu* 70440.00 -260.00 -0.37 71850.00 -1.96 SHFE Zin 18170.00 -70.00 -0.38 19475.00 -6.70 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Melanie Burton and Silvia Antonioli)
(Editing by Keiron Henderson)