Key TOCOM rubber futures rose 0.5 percent on Tuesday after hitting its lowest level in more than two-and-a-half months a day earlier, rising on a weaker yen and China's move to set its 2013 GDP growth target at 7.5 percent.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for August delivery was changing hands 1.7 yen higher at 285.6 yen as of 0027 GMT. The benchmark contract fell as low as 281.0 yen on Monday, the lowest since 275.7 hit on Dec. 17.
* The market was suppported after the U.S. dollar drifted to a one-week high of 93.73 yen, continuing to recover slowly from last week's slide to 90.85.
A weaker yen makes dollar-based commodities more expensive and can encourage players to take speculative buying positions in TOCOM rubber.
* China aims to grow its economy by 7.5 percent in 2013 and keep consumer inflation running around 3.5 percent for the year, outgoing Premier Wen Jiabao said on Tuesday as the country began its annual parliament meetings.
The world's second-largest economy grew 7.8 percent in 2012, the slowest pace in 13 years but still slightly above a 7.5 percent annual growth target.
* For the top stories in rubber market and other news, click, or
MARKET NEWS
* U.S. stocks closed higher on Monday as investors staged a late-day rebound, extending a recent trend of buying on dips and pushing major indexes near all-time highs despite concerns about growth and China's housing market.
* The euro languished near a three-month low on Tuesday as investors kept a wary eye on political developments in Italy, while commodity currencies proved resilient with the Australian dollar bouncing off an eight-month trough.
* U.S. oil futures fell to their lowest level in 2013 on Monday, declining for a third consecutive session in reaction to slowing growth in China and indicators that oil markets are amply supplied.
* Japan's Nikkei average is expected to open higher on Tuesday after U.S. stocks staged a late rally, while the confirmation hearing of Bank of Japan nominees should continue to boost expectations of further easing by the central bank.
