* Japanese rubber futures climbed 2% on Monday in thin
trade,
supported by a weaker yen after the Bank of Japan announced it
would keep rates ultra-low, although concerns over China's slow
economic recovery limited gains.
* The Osaka Exchange (OSE) rubber contract for October
delivery finished 4.1 yen, or 2%, higher at 212.8 yen
($1.6) per kg.
* "The stronger yen prompted fresh buying and some
short-covering by investors weary about further yen's
depreciation," a Tokyo-based trader said.
* "Still, the prices remained in the recent trading range of 200-215 yen amid worries over a slower-than-expected pace of economic recovery in China," he said, adding the market stayed calm to the failure of another U.S. bank as investors expected a bailout takeover.
* The BOJ kept ultra-low interest rates on Friday but
announced a
plan to review its past monetary policy moves.
* U.S. dollar was quoted around 136.70 yen , compared
with
around 134.98 yen on Friday afternoon. A weaker yen makes
yen-denominated assets more affordable when purchased in other
currencies.
* Weighing on sentiment, China's manufacturing
activity
unexpectedly shrank in April, official data showed on Sunday,
raising pressure on policymakers seeking to boost an economy
struggling for a post-COVID lift-off amid subdued global demand
and persistent property weakness.
* United States regulators said on Monday
First Republic Bank has been seized and a deal agreed to sell the bank to JPMorgan Chase & Co , in what is the third major U.S. institution to fail in two months.
* Japan's benchmark Nikkei average closed up 0.9%.
* Rubber inventories in warehouses monitored by the Shanghai
Futures Exchange fell 0.6% from a week earlier, the exchange
said on Friday.
* Trading was light as many of Asian financial markets were
closed
for holiday. The Shanghai Futures Exchange are shut over May 1-3
for the Labor Day holiday.
* Singapore's financial markets was closed on Monday for a
public
holiday. Trading will resume on Tuesday, May 2.
($1 = 136.7900 yen)
(Reporting by Yuka Obayashi, Editing by Louise Heavens)
