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

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


FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was changing hands 2.4 yen lower at 269.6 yen as of 0057 GMT. The benchmark contract fell as low as 269.0 yen, the lowest since Sept. 2.

* Tokyo markets were closed on Monday for a national holiday.

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

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

* Most farmers groups have agreed in principle to the government'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 Shanghai Futures Exchange rose 1.5 percent from last Friday, the exchange said 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 Treasury Secretary Lawrence Summers withdrew as a candidate for Federal Reserve chairman, lifting some market uncertainty about what was heading towards a contentious confirmation process.

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

* Japan's Nikkei share average inched up 0.1 percent in choppy trade on Friday as many investors awaited next week's U.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)