* Americans hand Obama a second term * China could resume stockpiling base metals soon * Coming Up: German industrial output; 1100 GMT (Updates prices; adds quotes, details) By Carrie Ho SHANGHAI, Nov 7 (Reuters) - London copper rose more than 1 percent on Wednesday after U.S. President Barack Obama won a second term in the White House, spurring hopes Washington will continue with economic stimulus measures and pushed down the greenback. The dollar fell broadly in Asia in reaction to the election result, as the re-election was seen ensuring that the Federal Reserve's quantitative easing will stay in place. "Many investors are taking this to mean that the next government will continue to be more inclined towards stimulus policies and rule out any sudden monetary tightening," said CIFCO Futures analyst Zhou Jie. Three-month copper on the London Metal Exchange rose 1.1 percent to $7,782 per tonne by 0712 GMT, gaining for a second session in a row, to stand off a two-month low of $7,596 hit on Monday. The most active February copper contract on the Shanghai Futures Exchange rose 1 percent to end the session at 56,600 yuan ($9,100) a tonne. "Overall, when incumbents win elections, it usually means continuation of the status quo. So an Obama win will present fewer uncertainties in the minds of investors," said a Shanghai-based trader. CHINA TRANSITION NEXT Investor focus is now turning to a once-in-a-decade leadership transition in top copper consumer China due to be kicked off at a Communist Party congress that starts on Thursday. Investors are hoping the new government will announce new measures to spur growth. "Just as in the case of the U.S. elections, investors will be glad when the party congress is finally out of the way," said the Shanghai trader. "The new lineup of top leaders and any announcements made during the event may also offer a hint at the future policy directions of this country. But more clarity will likely only come next year, when the new leaders are settled." Also supporting sentiment in industrial metals are plans by China to resume buying of some base metals, including copper and aluminium, perhaps as soon as this month, as it moves to fill state reserves and help domestic smelters hurt by weak demand. But Chinese downstream copper demand remains weak, with spot copper still trading at a discount to Shanghai front-month futures prices. "Although the discount has narrowed from last week, with spot prices rising over the past few sessions, this is mainly due to sellers being unwilling to sell at recent low prices," said a Shanghai-based copper buyer. At 55,800-56,050 yuan per tonne, spot copper in Shanghai is lower than ShFE's front-month futures, which stand at 56,290 yuan, even as the futures contract has dropped 7 percent since mid-September. Traders said physical premiums, the price paid on top of LME-based prices for copper imports into China, have been hovering at around $40-50, around $10 cheaper than a month ago and $80-90 lower than a year ago. Base metals prices at 0712 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7782.00 82.00 +1.06 2.39 SHFE CU FUT FEB3 56600 540 +0.96 1.74 LME Alum 1937.00 17.00 +0.89 -4.11 SHFE AL FUT FEB3 15345 30 +0.20 -3.13 HG COPPER DEC2 353.30 2.70 +0.77 2.82 LME Zinc 1911.00 11.50 +0.61 3.58 SHFE ZN FUT FEB3 14995 120 +0.81 1.35 LME Nickel 16345.00 270.00 +1.68 -12.64 LME Lead 2190.00 25.00 +1.15 7.62 SHFE PB FUT 15320 45 +0.29 0.20 LME Tin 20700.00 75.00 +0.36 7.81 LME/Shanghai arb 246 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month ($1=6.2456 Chinese yuan)

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