* European Central Bank hikes interest rate to 1.25 percent
* Tin near record high
* Trichet's comments calm markets- analysts
(Updates with closing prices)
By Rebekah Curtis and Silvia Antonioli
LONDON, April 7 (Reuters) - Copper reached its highest price levels in about two weeks on Thursday after Portugal announced it would accept a bailout from the European Commission, but then pared some gains as a new earthquake hit Japan.
Copper for three-month delivery on the London Metal Exchange (LME) closed at $9,670 a tonne, from a close of $9,605 on Wednesday.
It hit a two-week high at $9,753 a tonne as markets welcomed debt-ridden Portugal's announcement it would make a formal request for European aid.
"The fact that Portugal accepted the bail-out calmed markets down. What Trichet said about Portugal was also positive," said VTB Capital analyst Andrey Kryuchenkov.
The European Central Bank (ECB), headed by Jean-Claude Trichet, acknowledged it had encouraged Portugal to seek aid in view of the country's financial situation.
But the metal used in power and construction then slipped back after an earthquake of magnitude 7.4 shook the northeast of Japan and a tsunami warning was issued for the coast, already devastated by last month's quake and tsunami.
"It is quite surprising that the market has not moved more," said Kryuchenkov.
In line with expectations, the ECB raised its key interest rate by 25 basis points to 1.25 percent, tightening to counter price pressures in the region.
Expectations of healthy copper Chinese import data for March supported market sentiment.
"The numbers are expected to show a rebound from depressed February levels, although the possibility of a disappointment cannot be ruled out," MF Global said in a note.
Capping gains, the euro fell against the dollar after Trichet said the ECB did not decide whether the interest rate hike was the first in a series.
A stronger U.S. dollar makes it more expensive for holders of other currencies to buy dollar-priced commodities.
Copper was little changed after data showed that new U.S. claims for unemployment benefits fell by slightly more than expected last week, pointing to firming labour market conditions.
TIN NEARS RECORD
Tin hit a session high of $32,790, just $9 off a record peak in mid-February. The metal later closed at $32,550 a tonne from $32,100.
Keeping optimism about nearby demand in check, copper inventories at LME warehouses rose 1,500 tonnes to total 442,375 tonnes, at their highest since early July after rising steadily since December.
But long-term fundamentals remained positive for copper as a supply deficit is expected this year, analysts said.
Rio Tinto's copper unit chief executive said the world copper market could see a supply deficit of half a million tonnes this year and that the shortage may extend beyond 2013.
Aluminium closed at $2,672 a tonne from $2,670.
"Ali is still strong because of unrest in the MENA region," Kryuchenkov said adding that there are some aluminium refiners at risk of disruption in the area as political tensions continue.
Zinc closed at $2,453 a tonne from $2,450.
Battery material lead finished at $2,790 a tonne, from Wednesday's close of $2,820, while nickel ended at $26,800 a tonne from $26,425.
Metal Prices at 1616 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 441.90 4.90 +1.12 444.70 -0.63 LME Alum 2671.50 1.50 +0.06 2470.00 8.16 LME Cu 9669.00 64.00 +0.67 9600.00 0.72 LME Lead 2789.00 -31.00 -1.10 2550.00 9.37 LME Nickel 26750.00 325.00 +1.23 24750.00 8.08 LME Tin 32550.00 450.00 +1.40 26900.00 21.00 LME Zinc 2450.00 0.00 +0.00 2454.00 -0.16 SHFE Alu 16835.00 5.00 +0.03 16840.00 -0.03 SHFE Cu* 71690.00 210.00 +0.29 71850.00 -0.22 SHFE Zin 18545.00 -35.00 -0.19 19475.00 -4.78 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
(Editing by Jane Baird)