RUBBER-Tokyo futures rise 2.2 percent on yen weakness

Key TOCOM rubber futures rose as much as 2.2 percent on Tuesday as yen weakness brightened sentiment and boosted shares to a 32-month high, although the contract later gave up some gains as traders took profits.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for June delivery was up 1.3 percent, or 4.1 yen, at 316.3 yen per kg as of 0050GMT. The benchmark contract earlier rose as high as 319.1 yen, up 2.2 percent.

* Japan's Prime Minister Shinzo Abe said on Sunday the central bank must set a 2-percent inflation target as a medium-term, not long-term, objective. This indicates the central bank would have to print more yen to boost the economy.

* Japan last week approved a $117 billion stimulus package, the biggest spending boost since the financial crisis, in an effort to support the economy.

* Nissan Motor Co. CEO Carlos Ghosn said the U.S. car market should expand this year, but is looking for European sales to contract another 3 percent.

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MARKET NEWS

* Japan's Nikkei share average rose 1.2 percent to a 32-month high in early trade as the yen's weakness boosted demand for exporters' shares.

* The yen was quoted at 89.47 to the dollar on Tuesday after falling to a 2-1/2-year low of 89.67 in the previous session, while the Japanese currency was traded at 119.76 to the euro.

* U.S. crude oil prices rose 58 cents to settle at $94.14 a barrel on Monday, led higher by strength in the distillate futures following a series of refinery glitches.