RUBBER-Tokyo futures extend gains on demand optimism

Key TOCOM rubber futures rose over 1 percent on Wednesday, extending gains into a second day on an improving outlook for demand after U.S. stocks rallied to a historic high and China pledged record government spending to boost growth.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for August delivery was changing hands up 3.9 yen, or 1.4 percent, at 291.4 yen per kg as of 0016 GMT.

* But continued concerns over weak demand in Europe and a halt in the U.S. dollar's recovery versus the yen put a lid on gains in yen-based TOCOM prices.

* The benchmark contract on Monday fell as far as 281.0 yen, its lowest since 275.7 on Dec. 17.

* Europe's ailing car market has weakened further in recent months and some industry leaders hope governments will relax their opposition to plant closures and job cuts needed to restore profits.

* For the top stories in the rubber market and other news, click, or

MARKET NEWS

* Japan's Nikkei share average rose to a fresh 4-1/2 year high on Wednesday, as investors were cheered after the Dow Jones industrial average climbed to a record closing high on signs of a strengthening U.S. economy.

* The euro struggled to gain ground on Wednesday, with investors sidelined ahead of a European Central Bank policy meeting, but commodity currencies made the most of improved risk appetite.

* Brent crude broke a five-day losing streak on Tuesday, rising by more than 1 percent toward $112.