RUBBER-Tokyo futures rise 2 pct, near 3-wk high as US fiscal fears ease

TOKYO, Oct 15 (Reuters) - Key TOCOM rubber futures climbed more than 2 percent to near a three-week high on Tuesday on hopes that a deal would soon be reached to end the U.S. budget impasse that has cast a shadow over the global economy.


FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for March delivery <0#2JRU:> was changing hands 6.1 yen higher at 270.6 yen as of 0116 GMT. It was supported by extended gains in Shanghai futures, which were up nearly 2 percent.

The benchmark contract earlier rose to 271.5 yen, the highest since Sept. 27. TOCOM markets were closed on Monday for a national holiday.

* U.S. senators said they were closing in on a deal Monday that would reopen the government and push back a possible default for several months, though many hurdles remained as a Thursday deadline drew near.

* TOCOM sixth-month rubber may rise to 306.70 yen per kg in three months, driven by a wave C, Reuters market analyst Wang Tao said on Monday.

* Aluminium stocks held at three major Japanese ports were 242,300 tonnes at the end of September, down 7.4 percent from 261,600 tonnes a month earlier, trading house Marubeni Corp 8002.T said on Tuesday.

* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.2 percent from the last release on Sep 27, the exchange said on Friday.

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MARKET NEWS

* U.S. stocks ended a volatile session with modest gains on Monday.

* The dollar slipped on Monday and the yen gained on safe-haven demand.

* U.S. crude oil edged lower in early Asian trading on Tuesday after gaining in the previous session on expectations of a deal to reopen the U.S. government and avert a possible debt default.


DATA EVENTS

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

- 0430 Japan August Industrial output revised

- 0600 German August Import Prices

- 0645 French September Inflation Data

- 0830 UK September Inflation Data

- 0830 UK September Producer Prices

- 0900 Germany ZEW economic sentiment Oct

- 1145 U.S. ICSC chain stores Weekly

- 1230 New York Fed Empire State Survey For October (Reporting by Osamu Tsukimori; Editing by Joseph Radford)