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Tokyo rubber futures rebound from 1-1/2 week low on bargain-hunting

TOKYO, June 27 (Reuters) – New benchmark TOCOM rubber futures rose on Monday as investors looked for bargains after prices slid to a 1-1/2-week low last Friday in the wake of Britain’s historic vote to leave the European Union.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for new December delivery JRUc6 0#2JRU: was up 2.1 yen, or 1.4 percent, from its opening price of 149.6 yen at 151.7 yen ($1.48) per kg as of 0045 GMT, after losing 2.6 percent last Friday. RUB/T

Britain has voted to leave the European Union, forcing the resignation of Prime Minister David Cameron and dealing the biggest blow since World War Two to the European project of forging greater unity.

Japanese Prime Minister Shinzo Abe said on Monday he has instructed Finance Minister Taro Aso to watch currency markets “ever more closely” and take steps if necessary, in the wake of Britain’s vote to leave the EU.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.5 percent from the prior Friday, the exchange said on Friday.

U.S. auto sales will grow nearly 5 percent in June compared to a year earlier, but it looks as if 2016 may not break the annual sales mark reached last year, J.D.Power and LMC Automotive said on Friday.

MARKET NEWS

The U.S. dollar was steady at 102.080 yen JPY= against the yen early on Monday. The U.S. currency shed 1.8 percent last week when it weakened to as much as 99 yen, its lowest since November 2013.A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.3 percent in Monday trade, after global stock markets lost about $2 trillion in value on Friday, with MSCI’s broadest gauge of the world’s stock markets .MIWD00000PUS losing 4.8 percent, its biggest fall in nearly five years.

Oil prices dropped around half a percent on Monday, extending sharp declines after Britain’s vote to leave the EU sparked a sharp selloff in global markets on Friday amid concerns over risk aversion.

DATA/EVENTS (GMT)

The following data is expected on Monday: (Time in GMT)

1230 U.S. Trade balance May

1345 U.S. Markit services PMI flash Jun

($1 = 102.2900 yen)

(Reporting by Yuka Obayashi; Editing by Joseph Radford)

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