July 5 (Reuters) -London copper prices were heading for their first weekly gain in seven weeks, with support from a softer dollar, hopes of U.S. rate cuts, and stimulus measures and improving physical demand in top consumer China.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.1% to $9,892.50 per metric ton by 0424 GMT. The contract was up 3% on a weekly basis, set for the first weekly gain since the week ended May 17.

The dollar eased this week as soft economic data from the United States raised the case for rate cuts. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.

Meanwhile, some market participants hoped that China will announce some stimulus measures at a key political meeting in mid-July.

Prices of copper last week fell to the lowest in more than two months to $9,495.50 a ton. Many buyers in China resumed buying after staying on the sidelines for weeks during a volatile rally that pushed prices to a record level above $11,100 in May.

The discount to import copper into top consumer China has tightened to $2 a ton, compared to a $20-a-ton discount in May, signalling better demand.

However, capping further price gains were poor macroeconomic data globally and physical copper demand remaining price sensitive, especially around $10,000.

The most-traded August copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 eased 0.2% to 79,890 yuan ($10,990.51) a ton.

LME aluminium CMAL3 edged up 0.1% at $2,525 a ton, nickel CMNI3 rose 0.6% to $17,320, zinc CMZN3 edged up 0.2% at $2,992, lead CMPB3 eased 0.1% to $2,224.50 and tin CMSN3 increased 0.5% to $33,325.

SHFE aluminium SAFcv1 fell 0.8% to 20,315 yuan a ton, nickel SNIcv1 declined 1.3% to 136,530 yuan, tin SSNcv1 eased 0.4% to 274,630 yuan, zinc SZNcv1 edged down 0.2% to 24,645 yuan, while lead SPBcv1 climbed 0.8% to 19,665 yuan.

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($1 = 7.2690 yuan)

Reporting by Mai Nguyen in Hanoi; Editing by Janane Venkatraman

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