METALS-Copper lurches above $10,000 on weaker dollar after US data

Updates with prices at 1615 GMT

By Eric Onstad

LONDON, Sept 11 (Reuters) - Copper prices jumped to their strongest in over five months on Thursday, boosted by a weaker dollar after U.S. data gave investors more confidence that U.S. interest rates will be cut next week.

Three-month copper on the London Metal Exchange rose 0.5% to $10,061 a ton by 1620 GMT, its highest since March 26 and the second successive session it has moved above the $10,000 mark.

"I think the news in copper markets remains quite supportive," said WisdomTree commodities strategist Nitesh Shah.

The dollar index slipped after modestly hotter August and a rise in initial reinforced views that the Federal Reserve will resume cutting interest rates next week.

A softer dollar makes commodities priced in the U.S. currency cheaper for buyers using other currencies.

"Miners are experiencing more disruptions to their production than they had anticipated, combined with the fact that capex going into copper mines is just not enough to keep up with growth in metal demand," Shah added.

One of the world's largest copper mines, Grasberg in Indonesia, temporarily this week after an underground incident.

The most-traded copper contract on the Shanghai Futures Exchange gained 0.6% to 80,130 yuan ($11,251.37) a ton.

Copper has failed several times this year to make headway above $10,000 since it hit $10,164.50 in March for its strongest in more than eight months.

Many investors have been on the sidelines, waiting to see if U.S. tariffs dampen demand as expected, Shah said.

"It's more complicated and the net effect may be that metal demand doesn't really fall that much because of all the other stimulus activity," he said.

Among other metals, LME aluminium climbed 2% to $2,677 a ton, its highest since July 29, zinc rose 0.5% to $2,902, its strongest since March 27, lead added 0.3% to $1,993.50, tin gained 0.3% to $34,700 and nickel gained 0.5% to $15,225.

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($1 = 7.1218 Chinese yuan)

(Reporting by Eric Onstad

Editing by Louise Heavens, Elaine Hardcastle)

((eric.onstad@thomsonreuters.com [eric.onstad@thomsonreuters.com]; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; [https://twitter.com/reutersEricO;] Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net [rm://eric.onstad.thomsonreuters.com@reuters.net/]))

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METALS-Copper lurches above $10,000 on weaker dollar after US data