* Zinc stocks jump above 800,000 T, first time since 1995
* Aluminium hits 2-1/2-year high on input costs
* Copper surges to one-week high
* U.S. existing home sales rise, stocks jump (Updates prices, comments; rewrites throughout, changes byline and dateline from previous LONDON)
By Carole Vaporean and Melanie Burton
NEW YORK/LONDON, April 20 (Reuters) - Copper rose to its highest in a week on Wednesday after the U.S. housing market showed more signs of revival, strong earnings boosted U.S. equities and the dollar hit a 15-month low against the euro.
Signs that demand may be picking up also boosted aluminium to 2-1/2-year highs.
Three-month copper on the London Metal Exchange ended at $9,577 per tonne from a close of $9,340 on Tuesday.
Copper, used in power, construction and electronics, had fallen to a one-month trough at $9,207 a tonne on Monday.
In New York, May copper futures rallied 2.60 percent to $4.3395 per lb, an 11-cent increase. Earlier, they hit a one-week high at $4.3480 a lb.
"Copper's getting a boost with everything else. After IBM, Intel and Yahoo all beat the Street, we saw equities go on a tear. So, the strong belief in global recovery will continue to press on. Plus, the dollar is getting killed," said Phillip Streible, senior market strategist with Lind Waldock.
Strong profits and outlooks from tech and manufacturing companies propelled U.S. stocks higher, delivering the biggest lift to sentiment since quarterly earnings reports began a week ago. Leading the rally were Intel Corp, the most actively traded stock on the Nasdaq, and Dow component United Technologies Corp.
"The LME complex is trading higher as improved economic data in the U.S. and Europe adds to the impact of good first-quarter earnings reports," Citi analyst David Thurtell said.
Meanwhile, the euro soared against the dollar, boosted by an increased risk appetite and after a bond auction from Spain was well received by investors.
Dollar-denominated metals generally fare well when the greenback declines, this time by 1.2 percent against the euro.
Sales of previously owned U.S. homes rose more than expected in March, a trade group said, raising cautious optimism a recovery may be in sight for the housing market.
"It is very good news, and it really shows that the improvement we've seen on the employment front is finally finding its way in areas outside of just the malls," said Burt White, chief investment officer at LPL Financial in Boston.
Data on Tuesday showed U.S. housing starts and permits for future home construction rose more than expected in March, raising prospects that consumption in the world's second-biggest market for metals was gathering pace.
Risk sentiment improved, underpinning investor appetite for metals. Upbeat U.S. and European corporate earnings also helped soothe market jitters after Standard & Poor's this week warned it could cut a U.S. sovereign credit rating and as speculation intensified that Greece would need to restructure its debt.
"A lot of people got spooked out of the market the other day when S&P put the credit outlook for U.S. debt on notice. That pulled the rug out from under a lot of people and they panicked," Streible said.
"Now, they're getting back in."
ALUMINIUM HITS FRESH HIGHS
Aluminium, used in transport, construction and packaging, received a lift from rising power prices, which account for about 35 percent of aluminium smelting costs.
A Chinese directive to pare back new smelting plants may also have helped fuel its advance, Citi's Thurtell said.
China, in a circular posted on a government website, called on central and provincial authorities to stop approving the construction of new aluminium smelting capacity.
"(The move) limits the probability of Chinese expansions taking the world into chronic oversupply," he said.
In 2010, China accounted for two-thirds of global output.
Aluminium closed at $2,730 a tonne, up from $2,714 at the close on Tuesday. It earlier hit its highest level in 2-1/2 years at $2,745 a tonne.
Zinc closed at $2,360 a tonne from $2,329, despite a large 26,550-tonne shipment of the metal into New Orleans warehouses. LME stockpiles now stand at 812,100 tonnes, their highest level since 1995.
Tin closed at $32,650 from $32,400 while stainless steel material nickel changed hands at $26,400 from $25,300. (Additional reporting by Sue Thomas; editing by Dale Hudson)