RUBBER-Tokyo futures hit two-week low on firmer yen

Reuters

TOKYO, Sept 17 (Reuters) - Key TOCOM rubber futures fell toa two-week low on Tuesday as a stronger yen dampened marketsentiment.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract forFebruary delivery was changing hands 2.4 yenlower at 269.6 yen as of 0057 GMT. The benchmark contract fellas low as 269.0 yen, the lowest since Sept. 2.

* Tokyo markets were closed on Monday for a nationalholiday.

* The U.S. dollar was quoted around 99.12 yen in Asiaby 0102 GMT, down from 99.72 yen late Friday. A stronger yenmakes dollar-based rubber cheaper and normally encouragesplayers to sell rubber contracts to cut losses.

* Around 500 protesters armed with slingshots clashed withriot police firing tear gas on Monday after blocking a highwayin southern Thailand in a bid to force the government toincrease a subsidy for rubber farmers.

* Most farmers groups have agreed in principle to thegovernment's offer of a 21.2 billion baht ($665 million)subsidy, which works out at around 10 baht per kg.

* Rubber inventories in warehouses monitored by the ShanghaiFutures Exchange rose 1.5 percent from last Friday, the exchangesaid on Friday.

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

MARKET NEWS

* U.S. stocks advanced on Monday after former TreasurySecretary Lawrence Summers withdrew as a candidate for FederalReserve chairman, lifting some market uncertainty about what washeading towards a contentious confirmation process.

* Global oil prices fell on Monday after U.S. and Russianofficials reached a weekend deal to strip Syria of chemicalweapons, easing investor worries.

* Japan's Nikkei share average inched up 0.1 percent inchoppy trade on Friday as many investors awaited next week'sU.S. Federal Reserve meeting.

DATA EVENTS

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

- 0200 China FDI

- 0900 Germany ZEW economic sentiment

- 0900 Euro zone Eurostat trade

- 1145 U.S. ICSC weekly chain store sales

- 1230 U.S. Consumer inflation

- 1400 U.S. NAHB housing market index

- 2030 U.S. API weekly crude stocks

- Federal Open Market Committee begins two-day meeting (Reporting by Osamu Tsukimori; Editing by Richard Pullin)

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