SHANGHAI, Apr. 30 -- Copper led a rebound in industrial metals after Federal Reserve officials restated their intention to keep the benchmark interest rate near zero to boost growth, increasing the prospects for a global economic recovery.

Three-month delivery copper on the London Metal Exchange rose from a one-month low, gaining by as much as 1.6 percent to $7,520 a metric ton. It traded at $7,441 at 3:15 p.m. in Shanghai. Aluminum, lead, zinc and nickel all advanced.

The Federal Open Market Committee said yesterday in a statement it would keep the rate near zero for an "extended period" and said the labor market is "beginning to improve." Officials also said growth in household spending has "picked up recently." Equities rose and the dollar halted its climb against a basket of six major currencies. The U.S. is the second-largest consumer of copper, used in homes and machinery.

"The reiteration of low U.S. interest rates supported sentiment," Edward Fang, an analyst at China International Futures (Shanghai) Co. said today. "Technically, we also see a rebound in metals after recent declines," he said.

Copper in Shanghai gained as much as 1.2 percent to 59,150 yuan ($8,666) a ton and closed at 58,830 yuan.

Still, the "cautious atmosphere isn't dropping off any time soon with uncertainties in Europe," Fang said. Prices in London yesterday fell to $7,360, the lowest since March 25 after Standard & Poor's slashed Greece's credit rating to junk, and cut Portugal's by two steps this week.

Debt Woes

S&P also cut its rating on Spanish debt to AA yesterday from AAA as it said Spain is underestimating its fiscal problems and overestimating its ability to grow. Spanish Deputy Finance Minister Jose Manuel Campa said that his country will have no trouble financing a 16.2 billion euro ($21.3 billion) bond redemption in July and won't need to ask for European Union aid as Greece has.

Aluminum in London climbed 0.2 percent to $2,193.50 a ton and zinc increased 1.1 percent to $2,354.75 a ton.

Aluminum and zinc "should be very sensitive to the real- estate market which China's government is trying to cool," Lin Junhua, analyst at Jinpeng Futures Co., said from Beijing.

China won't back down from measures to cool the nation's property market because the government's "credibility" is at stake, Credit Suisse Group AG said.

The government has in the past two weeks raised mortgage rates and down-payment ratios, barred lending for third-home purchases and ordered tighter scrutiny of developers' financing to restrain property prices that surged a record 11.7 percent in March.

Lead rose 0.9 percent to $2,258 a ton and nickel added 0.4 percent to $25,750 a ton, while tin gained 0.9 percent to $18,166 a ton.