RUBBER-Tokyo futures fall as Syria worries fester

Reuters

TOKYO, Aug 30 (Reuters) - Key TOCOM rubber futures droppedfor a third session on Friday as geopolitical tensions in Syriacontinued to fester.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract forFebruary delivery was down 0.8 yen, or 0.29percent, at 271.2 yen as of 0052 GMT, after ending lower onThursday.

* Worries that conflict in Syria would sap confidence in theglobal economy persisted, although the British parliament onThursday rejected a motion supporting military action againstPresident Bashar al-Assad.

* The U.S. economy accelerated sharply in the second quarterthanks to a surge in exports, bolstering the case for theFederal Reserve to wind down a major economic stimulusprogramme.

* Japan's core consumer inflation rate accelerated to itshighest in nearly five years in July and factory outputrebounded smartly, suggesting that government and central bankefforts to end deflation are making some progress.

* For the top stories in rubber market and other news, click, or

MARKET NEWS

* U.S. crude fell more than $2 a barrel to below $107 onFriday as fears over disruptions to supply from the Middle Easteased slightly.

* The dollar greeted the Asian session on Friday at itshighest in nearly four weeks against a basket of majorcurrencies, having posted a strong rally thanks to month-enddemand and upbeat U.S. economic data. It rose to 98.37 yen from Thursday's low of 97.45.

* Japan's Nikkei share average rose for a second dayon Friday as the U.S. data propped up Wall Street overnight.

DATA EVENTS

* The following data is expected on Friday: (Time in GMT)

- 0500 Japan Construction orders

- 0600 Germany Retail sales

- 0800 Italy Unemployment rate

- 0900 Euro zone Business climate

- 0900 Euro zone Economic sentiment

- 0900 Euro zone Inflation

- 0900 Euro zone Unemployment rate

- 1200 India Q2 GDP quarterly

- 1230 U.S.

Personal income

- 1345 U.S.

Chicago PMI (Reporting by Yuka Obayashi; Editing by Joseph Radford)

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