(Adds analyst comment and LONDON dateline, updates prices)

By Eric Onstad

LONDON, Sept 12 (Reuters) - Copper prices jumped to

their highest in nearly two weeks on Thursday on signs of firmer

demand in top metals consumer China and the prospect of interest

rate cuts.

Three-month copper on the London Metal Exchange was

up 1.9% to $9,263.50 a metric ton by 0935 GMT after touching its

strongest since Aug. 30 at $9,294.50.

"The market is looking perky. It looks like copper demand is

potentially showing signs of recovery in China. I think that's

the main driver for the market strength," said Ole Hansen, head

of commodity strategy at Saxo Bank in Copenhagen, adding that

stocks of both copper and aluminium have been shrinking of late.

Shanghai Futures Exchange copper inventories have slid 36%

over the past three months to 215,374 tons, the lowest level

since March.

The import premium for copper in China has

climbed to $65 a ton, compared with a discount of $20 a ton in

May.

"We have seen some buying interest from the spot market in

China recently," said Matt Huang, analyst at broker BANDS

Financial, adding that demand was supported by purchases made

ahead of a long October holiday in China.

However, further price increases might dampen demand, Huang

added.

The most traded October copper contract on the Shanghai

Futures Exchange closed 1.5% up at 73,830 yuan

($10,363.85) a ton.

Nickel was the worst performing LME metal, edging up

0.2% to $16,140 a ton.

The market shrugged off news on Wednesday that Russian

President Vladimir Putin had said Moscow should consider

limiting exports of nickel. Russia is a major nickel supplier to

China and Europe.

LME aluminium climbed 1.8% to $2,413 a ton, zinc

surged 2.9% to $2,850, lead advanced 2.3% to

$2,035 and tin was up 1.3% at $31,355.

Aluminium touched its strongest since Sept. 3 and zinc hit

its highest since Sept. 2.

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($1 = 7.1238 yuan)