* Market focus on China restocking next year

* 2011 demand expectations driving copper gains

* LME copper stocks up for 5th straight day (Recasts with New York closing copper price, adds New York dateline/byline and analyst comments)

By Chris Kelly and Michael Taylor

NEW YORK/LONDON, Dec 17 (Reuters) - Copper closed up on Friday, notching its third consecutive week of gains, as short-term technical momentum and bullish demand prospects from China in the new year kept prices buoyant near all-time record peaks.

Copper bulls were unfazed by a broad-based drop in global equity markets and a rallying dollar, and instead focused on a positive stream of economic data that suggested improved demand conditions in the year ahead.

"All of the signals are there that we are going to see demand continue at a very brisk pace all throughout 2011," said Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey.

"These markets have shown an ability over the course of the year to withstand moves in the euro/dollar relationship. I think the supply/demand fundamentals are strong enough to triumph, or continue to triumph," he said.

London Metal Exchange (LME) benchmark copper CMCU3 ended up $79 at $9,070 a tonne, nearly $200 away from its all-time record peak at $9,267.50 hit on Dec. 14.

Source: http://af.reuters.com/article/metalsNews/idAFLDE6BG0V420101217