Tokyo futures fall 1 pct as yen steadies

Key TOCOM rubber futures fell 1 percent on Tuesday, approaching a two-week low and reversing gains from a day earlier after the yen steadied against the dollar.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for July delivery was trading 3.9 yen lower at 320.3 yen as of 0046 GMT. It settled up 2.8 yen a day earlier on the back of a weaker yen and the strength in the Nikkei stock market.

The benchmark contract fell as low as 320.4 yen, edging towards a two-week low of 320.0 hit on Friday.

* Tokyo futures, which set the tone for tyre grade prices in Southeast Asia, had rallied to their highest in 10 months around 337 yen this month, supported by a weaker Japanese currency.

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MARKET NEWS

* U.S. markets were closed on Monday for a national holiday.

* The yen stood little changed on Tuesday from a day earlier, holding near a 33-month low against the dollar.

* Brent crude oil consolidated below $118 per barrel on Monday, underpinned by expectations of improving global growth and continuing tensions in the Middle East.

* Japan's Nikkei share average edged downwards at Tuesday's open as investors awaited the appointment of a new Bank of Japan governor and eyed risks in the euro zone.

DATA EVENTS

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

- 1000 Germany ZEW economic sentiment

- 1500 U.S. NAHB housing market index