Sept 3 (Reuters) - London copper prices rose on Thursday as data from China showed a steady economic recovery in the world's biggest copper consumer after the hit from the COVID-19 pandemic.

Benchmark three-month copper on the London Metal Exchange rose 0.2% to $6,708 a tonne by 0224 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange eased 0.2% to 52,070 yuan a tonne.

The recovery in China's service sector activity extended into a fourth month in August, an industry survey showed.

Earlier this week, the world's second-largest economy posted solid expansion in manufacturing activities and the first increase in new exports orders this year.

Copper is often used as a gauge of global economic health.

FUNDAMENTALS

* China's GEM Co Ltd signed a deal to buy battery-grade nickel chemicals from a rival plant in Indonesia.

* July copper output at Chile's state-owned miner Codelco fell 4.4% year-on-year to 133,300 tonnes, but production rose 3.8% to 100,900 tonnes at BHP's Escondida mine. Output increased 22.8% to 58,100 tonnes at Anglo American and Glencore's Collahuasi mine in the same period.

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MARKETS NEWS

* Asian equities were set to open higher after stronger U.S. economic data and the prospect of additional U.S. stimulus prompted sharp, and broader, gains on Wall Street, while the dollar extended its upward move.

DATA/EVENTS (GMT)

0500 India HIS Markit Svcs PMI Aug

0750 France Markit Serv, Comp PMIs Aug

0755 Germany Markit Services PMI Aug

0755 Germany Markit Comp Final PMI Aug

0800 EU Markit Serv, Comp Final PMIs Aug

0830 UK Reserve Assets Total Aug

1230 US International Trade July

1230 US Initial Jobless Clm Weekly

1345 US Markit Serv, Comp Final PMIs Aug

1400 US ISM N-Mfg PMI Aug

(Reporting by Mai Nguyen; Editing by Subhranshu Sahu)