Copper prices rose on Tuesday after China cut mortgage interest rates, but gains are stymied by investors waiting for more stimulus and support measures by the government.

Copper three-month futures rose 0.6% to $8481 a tonne, with prices surging 4.4% at the London Metals Exchange since hitting three-month lows on February 9.

China announced the largest mortgage interest rate cut ever on Tuesday by nearly 25 basis points on five-year loans.

The aggressive step is aimed at underpinning the struggling sector, but investors await even more steps.

The markets also await profits results from mining companies to take a clear picture of the current and future status.

Analysts are expecting a copper deficit this year, as supplies from FM.TO weaken, after Panama ordered the closure of the Anglo mine with capacity of 350 thousand tonnes.

Otherwise, aluminum prices fell 0.6% at the London Metals Exchange to $2184 a tonne after inventories surged to six-week highs at 564,675 tonnes.

Minerals were still overall supported by the weaker dollar, making greenback-denominated commodities cheaper to holders of other currencies.

As China exits the New Lunar Year holiday, traders and analysts are searching for clues on demand in the next few weeks, amid hopes for stronger construction activity as the winter season wraps up.

As for other metals, nickel prices rose 0.3% to $16,405 a tonne, while zinc fell 1% to $2378 a tonne, as lead fell 0.2% to $2038, while tin traded flat at $26,425.

Otherwise, the dollar index fell 0.3% to 104.01 as of 17:10 GMT, with a session-high at 104.4, and a low at 103.8.

Copper futures due in May rose 0.4% to $3.86 a pound as of 17:04 GMT.