TOKYO, June 28 (Reuters) - Benchmark TOCOM rubber futures surged to near two-week highs on Wednesday, driven by an overnight jump in oil prices and a weaker yen against the U.S. dollar.
FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for December delivery was up 5.8 yen, or 3 percent, at 199.4 yen ($1.8) per kg as of 0030 GMT.
* The contract earlier hit 202.0 yen, its highest since June 16. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
* China's economy continued to improve in the second quarter, with corporate profits rising and hiring up, a private survey showed, but it suggested the Asian giant may have to brace for tougher times ahead even though firms have been able to weather a tighter financing environment.
* European Central Bank President Mario Draghi opened the door to tweaks in the bank's aggressive stimulus policy on Tuesday, fuelling market expectations that the ECB will announce a reduction of stimulus as soon as September.
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MARKET NEWS
* Oil prices rose nearly 2 percent and hit a one-week high on Tuesday, boosted by a weaker dollar, short covering and expectations that crude inventories in the United States may decline for a third consecutive week.
* The U.S. dollar eased from a more than one-month high against the Japanese currency of 112.46 yen on Tuesday, touched earlier in the session, and was last just 0.3 percent higher at 112.12 yen.
* Japan's benchmark Nikkei stock average was down 0.3 percent on Wednesday after stocks on Wall Street finished at session lows the previous day
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