BEIJING, Aug 30 (Reuters) -London copper prices climbed on Friday, while heading for a marginal monthly gain since May, thanks to prospects of U.S. interest rate cut, while demand woes limited gains.

Three-month copper on the London Metal Exchange CMCU3 added 0.3% to $9,270.50 per metric ton by 0126 GMT. The contract has gained 0.5% so far this month, the first monthly increase since May.

The most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 slid 0.3% to 73,990 yuan ($10,425.24) a ton, up 0.5% so far this month.

Copper prices, often seen as an economic indicator, tumbled in the beginning of August when dissapointing U.S. jobs data fanned recession risks and roiled global risk asset market.

The market then recovered as subsequent economic reports eased the fears, while participants also eyed a rate cut in September which would likely brighten industrial demand.

Data showed on Thursday the U.S. economy grew a little faster than expected in the second quarter, modestly reducing expectations for a larger 50 basis-point rate cut next month by the Federal Reserve.

Traders are waiting for more data later in the day for further clues on rate cut.

This month also saw some declines in copper invetories in China, as falling prices encouraged buying. However, overall demand stayed tepid, hit by the housing crisis.

Demand is expected to pick up because of better seasonal industrial activities in September and October.

LME aluminium CMAL3 climbed 0.6% to $2,471 a ton, nickel CMNI3 added 0.2% to $17,035, zinc CMZN3 moved 0.6% higher to $2,896.50, lead CMPB3 increased 0.3% to $2,041.50 and tin CMSN3 nudged 0.1% up at $32,375.

SHFE aluminium SAFcv1 dipped 0.2% to 19,730 yuan a ton, lead SPBc1 slipped 0.5% to 17,315 yuan, while nickel SNIcv1 was 0.4% higher to 132,150 yuan, zinc SZNcv1 trimmed 0.3% lower to 24,090 yuan and tin SSNcv1 nudged 0.1% higher to 263,890 yuan.

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($1 = 7.0972 Chinese yuan renminbi)

Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich

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