* Copper still at lowest since Dec last year
* U.S. jobs gains largest in 11 months
(Updates with closing prices)
By Marie-Louise Gumuchian and Sue Thomas
LONDON, May 6 (Reuters) - Base metals turned positive on Friday after data, showing U.S. employment rose more than expected in April, calmed commodities markets spooked by fears of slowing growth in the world's largest economy.
Copper for three-month delivery on the London Metal Exchange closed at $8,825 a tonne, off a session low of $8,657 after closing at $8,820 on Thursday.
But the metal is still hovering at around its lowest levels since December last year, and suffered its biggest weekly loss since March.
It could fall further, to around $8,000 a tonne, Sean Corrigan, Diapason Commodities Management chief investment strategist, said.
"It has to get above $9,000 to trade into the band it's been in this year pretty quickly," he said.
"Economic sentiment has swung, people have become more fearful across all the markets, not just commodities, so this could easily see further liquidation if there is no rapid recovery back into the band."
U.S. employment increased more than expected in April as private companies created jobs at the fastest pace in five years, pointing to underlying strength in the economy, even though the jobless rate rose to 9.0 percent.
"It's a pretty good number, but we've always made the point that this is volatile," said Michael Shaoul, chairman of Marketfield Asset Management in New York.
"To us, it looks like a good recovery taking place in payrolls, and it goes against the worries that came about with the jobless claims yesterday."
Commodities across the complex stabilised after the U.S. jobs data reassured investors who had been rattled by worries over global growth and days of sharp price falls.
Tin, which fell more than 7 percent on Thursday, rose more than 2 percent to close at $29,650 on Friday from a previous close of $28,900 a tonne.
Barclays Capital said the metals sell-off had been overdone, and opened a buying opportunity.
"Those who do not choose to take advantage of this window are likely to be disappointed later," it said in a note.
One London metals trader said there had been little physical activity, and that some traders were using the latest bounce to take profits or cut their losses.
"Most definitely (there is selling into rallies)," the trader said. "Some frustrated longs from yesterday and traders who went long this morning are taking profits, there's hardly any physically backed business."
Copper futures open interest figures showed a fall in the near term (the cash to May contract prompt date) alongside Thursday's falling prices, suggesting long liquidation. But three-month open interest jumped, which alongside falling prices suggests fresh short positions.
NO MORE SURPRISES
"Clearly what the market doesn't want now is any negative surprises," Corrigan said before the U.S. employment data.
"If we can get through that then maybe calm will prevail and the markets can become slightly more well behaved perhaps."
In another spot of supportive news, inventories of copper, aluminium and nickel at LME warehouses fell, the latest data showed..
Aluminium closed at $2,608 from Thursday's close of $2,635. Zinc, used in galvanizing, was $2,140 from $2,125. It earlier fell to its lowest since end-November at $2,048 a tonne.
Battery material lead closed at $2,280 from $2,295. It also fell to its lowest since end-November at $2,200 a tonne. Nickel was $24,650 from $24,525.
Metal Prices at 1613 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 399.35 0.25 +0.06 444.70 -10.20 LME Alum 2608.00 -27.00 -1.02 2470.00 5.59 LME Cu 0.00 -8820.00 -100.00 9600.00 -100.00 LME Lead 2280.00 -15.00 -0.65 2550.00 -10.59 LME Nickel 24600.00 75.00 +0.31 24750.00 -0.61 LME Tin 29650.00 750.00 +2.60 26900.00 10.22 LME Zinc 2140.00 15.00 +0.71 2454.00 -12.80 SHFE Alu 16610.00 -110.00 -0.66 16840.00 -1.37 SHFE Cu* 65940.00 -1100.00 -1.64 71850.00 -8.23 SHFE Zin 16330.00 -390.00 -2.33 19475.00 -16.15 ** 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; editing by Anthony Barker)