Tokyo futures fall 3 pct, tracking oil (May 23)

TOKYO, May 23 (Reuters) – Key TOCOM rubber futures fell 3 percent early on Wednesday tracking losses in oil and shares as investors remained on edge ahead of an EU leaders summit and a Bank of Japan policy meeting later in the day.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for October delivery <0#2JRU:> was down 7.5 yen or 2.7 percent, at 0045 GMT. The benchmark contract earlier fell as low as 272 yen, down 3 percent.

* The contract rose above 280 yen in the previous session on news that Thailand would import rubber from the TOCOM exchange, but investors were still cautious, not knowing how much Thailand plans to buy.

* China’s strong appetite for rubber could help the market stave off pressure from a worsening debt crisis in Europe that threatens commodities demand while Thailand’s move to prop up prices will aid the tyre industry, industry officials said.

MARKET NEWS

* Oil prices fell on Tuesday as signs of a deal between the U.N. nuclear watchdog and Iran on Tehran’s nuclear program eased fears of oil supply disruptions, while the euro zone debt crisis continued to threaten economic growth.

* Japan’s Nikkei share average fell 1 percent.

DATA EVENTS

* The following data is expected on Wednesday:

- 0800 OECD latest economic outlook

- 1145 U.S. ICSC chain stores yy Weekly

- 1400 U.S. Existing home sales Apr

- 1400 EZ Euroilstock refinery output Apr

- 1400 EZ Euro zone consumer confidence May

- 1400 U.S. Richmond Fed manufacturing, services index May

- 2030 U.S. API weekly crude stocks Weekly

- 2030 U.S. API weekly dist. stocks Weekly

- 2030 U.S. API weekly gasoline stk Weekly

(Reporting by Yuko Inoue; Editing by Edwina Gibbs)

Source: http://sg.finance.yahoo.com/news/rubber-tokyo-futures-fall-3-011053426.html