RUBBER-Tokyo futures rally after U.S. Fed sticks to stimulus

Reuters

TOKYO, Sept 19 (Reuters) - Key TOCOM rubber futures jumpednearly 3 percent to a 10-day high on Thursday after the U.S.Federal Reserve surprised markets by postponing a scale-back ofits monetary stimulus.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract forFebruary delivery was up 8.1 yen, or 2.92percent, at 285.9 yen as of 0041 GMT. The benchmark rose as highas 287.0 yen in early trade, the highest since Sept. 9.

* The U.S. Federal Reserve defied investor expectations onWednesday by postponing the start of the wind down of itsmassive monetary stimulus, saying it wanted to wait for moreevidence of solid economic growth.

* A drop in farmer prices and increased taxes risk stiflingdevelopment of Ivory Coast's rubber sector and encouragingsmuggling to neighbouring West African countries, the country'snatural rubber association said on Wednesday.

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

MARKET NEWS

* The dollar languished at a seven-month low against abasket of major currencies in Asia on Thursday after the FederalReserve wrong footed many investors who had positioned for ascaling back in its massive stimulus program. The dollar wasquoted around 98.10 yen by 0040 GMT.

* Japan's Nikkei share average climbed about 0.8percent in early trade on Thursday after U.S. stocks rallied torecord highs on Wednesday on surprised decision by the Fed.

* Crude oil futures settled sharply higher on Wednesday,surging late in the session after the U.S. Fed said it wouldleave its monetary stimulus program unchanged, a policy largelyseen as supporting commodity prices.

DATA EVENTS

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

- 1230 U.S.

Weekly jobless claims

- 1230 U.S.

Q2 current account

- 1400 U.S.

Philly Fed business index

- 1400 U.S.

Existing home sales (Reporting by Yuka Obayashi; Editing by Richard Pullin)

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