TOCOM REBOUNDS FROM 1-1/2 WEEK LOW ON FIRMER TOKYO STOCKS

Benchmark Tokyo rubber futures rebounded on Monday, as higher Tokyo stocks helped investors boost risk appetite and as traders looked for bargains after a dip to a 1-1/2 week low on Friday following Britain's vote to leave the European Union.

The Tokyo Commodity Exchange (TOCOM) new rubber contract for December delivery finished at 154.1 yen ($1.51) per kg, up 4.5 yen, or 3.0 percent, from its opening price of 149.6 yen.

The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, plunged to a 1-1/2 week low on Friday after Britain voted to leave the EU, triggering a surge in the safe-haven yen and a dive in oil prices.

"A flurry of buyback kicked in after a strong gain in the Nikkei index which underlined a recovery in risk appetite," said Toshitaka Tazawa, analyst at Fujitomi Co.

Japan's Nikkei share average recouped some of last week's steep declines on Monday, as government officials stepped up warnings that they may intervene in currency markets to stabilise the yen after Britain voted to leave the EU.

Oil prices stabilised on Monday as market participants better absorbed the shock of last week's vote in Great Britain to leave the EU and recognised the referendum would have little effect on global fuel demand.

"I expect the market's focus will shift back to China this week," Tazawa said.

Profits of Chinese industrial companies rose 3.7 percent in May from a year earlier, slowing from April's pace and adding to concerns that the world's second-largest economy may be losing some momentum.

Still, the most-active rubber contract on the Shanghai futures exchange for September delivery, soared 310 yuan to finish at 11,270 yuan ($1,697.26) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 132.0 U.S. cents per kg, up 3.7 cents.