RUBBER-Tokyo futures near 2-month high on weaker yen

Tokyo rubber futures edged higher on Wednesday to hold near a two-month high, supported by a weaker yen and strength in Asian stock markets.

FUNDAMENTALS

* The benchmark Tokyo Commodity Exchange rubber contract for May delivery was 2.1 yen higher at 268.6 yen as of 0038 GMT. The benchmark contract rose as high as 268.9 yen, just below a two-month high of 269.2 yen hit on Tuesday.

* Rubber has strengthened over the past month, while the yen has softened after Shinzo Abe, the leader of Japan's main opposition party which is expected to win a Dec. 16 election, called for aggressive policy action from the Bank of Japan, including embarking on "unlimited easing".

* The U.S. Federal Reserve, which ends its two-day policy meeting later in the day, is expected to replace its expiring "Operation Twist" programme with a fresh round of outright Treasury purchases.

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MARKET NEWS

* U.S. stocks rose on Tuesday, led by gains in technology companies, helping the S&P 500 end at its highest level since Election Day.

* The dollar wallowed at three-month lows against the Australian currency and remained broadly under pressure on Wednesday as markets geared up for more stimulus from theFederal Reserve.

* Oil futures rose modestly on Tuesday after OPEC said its members pumped less oil last month and as a weaker U.S. currency helped to firm dollar-denominated commodity prices.

* Japan's Nikkei share average rose on Wednesday, hitting a 7-1/2 month high led by gains in tech shares and other exporters on the weak yen while Wall Street's strong performance buoyed sentiment.