RUBBER-Tokyo futures rise on weak yen, fall in inventories

Key Tokyo rubber futures rose on Monday, extending gains into a second session and approaching last week's two-month high, helped by a stronger dollar against theyen over the weekend and a fall in inventories.

 FUNDAMENTALS

* The key Tokyo Commodity Exchange (TOCOM) rubber contract for October delivery was trading 0.8 percent higher at 290 yen per kg as of 0046 GMT.

* The October contract is recovering after falling as low 276.3 yen last Thursday amid concerns over a seasonal rise in rubber supply. It was a one-week low and down 7.6 percent from a two-month high of 299 yen earlier in the week.

* Industry data released on Friday showed crude rubber inventories at Japanese ports fell to 15,637 tonnes as of May 10, down 457 tonnes over a 10-day period after hitting their highest level since 2007 at the end of April.

* In China, rubber inventories in warehouses monitored by the Shanghai Futures Exchange as of May 17 fell 0.8 percent from last Friday.

* Markets in Thailand are closed on Monday for a public holiday.

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MARKET NEWS

* The Nikkei share average extended its record-breaking run and hit a fresh 5-1/2 year high on Monday morning, as further weakness in the yen and signs of an improving U.S. economy bolstered prospects for higher Japanese corporate earnings in the current business year.

* The dollar rose as high as 103.32 yen, a 4-1/2 year high, late last week, and was hovering below that level early in Asia on Monday in the wake of reports suggesting the Japanese government might be happy with the level of the currency following its extended decline.

* Oil rose for a third straight session on Friday, supported by a raft of strong economic data from top oil consumer the United States that also boosted U.S. equities, even as the dollar hit a multi-year high.