RUBBER-Tokyo futures edge up weaker yen supports

TOKYO Sun Oct 27, 2013 8:45pm EDT

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TOKYO Oct 28 (Reuters) - The new benchmark TOCOM rubber futures contract edged up in early trade on Monday, supported by a weaker yen that makes the contract more affordable for investors using other currencies.

FUNDAMENTALS

* The Tokyo Commodity Exchange rubber contract for April delivery was up 0.2 yen from the opening price at 261.3 yen per kg by 0024 GMT. The March contract settled 6.1 yen lower at 256.6 yen per kg on Friday.

* The U.S. dollar was quoted around 97.54 yen in Asia, edging away from a more than two-week low of 96.92 yen hit on Friday.

The dollar remained supported against the yen on the view that the yield differential between Japanese government bonds and U.S. Treasuries will persist, as the Federal Reserve eventually moves toward tapering its stimulus while the Bank of Japan maintains its ultra-easy stance.

* Prime Minister Shinzo Abe told Japanese troops on Sunday that Japan would not tolerate the use of force to change the region's status quo, comments likely to rile Beijing which is locked in a long and bitter territorial dispute with Tokyo.

* On Friday, rubber inventories in warehouses monitored by the Shanghai Futures Exchange were up 0.7 percent week-on-week, the bourse said.

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