RUBBER-Japan futures edge higher on Thailand supply snags, but tariff concerns cap gains

Updates market at close

SINGAPORE, Jan 22 (Reuters) -

• Japanese rubber futures ticked up on Wednesday, as worsening weather in top producer Thailand sparked supply concerns, though the prospect of fresh tariffs from U.S. President Donald Trump capped gains.

• The Osaka Exchange (OSE) rubber contract for June delivery JRUc6, 0#2JRU: ended daytime trade 3.6 yen higher, or 0.95%, at 382.1 yen ($2.45) per kg.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for March delivery SNRv1 closed down 180 yuan, or 1.02%, to 17,435 yuan ($2,394.46) per metric ton.

• The most active February butadiene rubber contract on the SHFE SHBRv1 fell 95 yuan, or 0.63%, to 14,930 yuan ($2,050.43) per metric ton.

• "Rubber prices remain supported by rainy weather, which is limiting raw material supplies, coupled with strong physical demand from Chinese dealers," said a Singapore-based trader.

• Thailand's meteorological agency warned on Tuesday of heavy rains that may cause flash flooding from Jan. 27 to 28.

• In top consumer China, downstream enterprises still have demand for stocking, though imported cargoes will arrive at Chinese ports in late January, boosting supply, Chinese consultancy Jinlianchuang said in a note.

• China and Hong Kong stocks tumbled on Wednesday after Trump hinted at new tariffs, ending a brief reprieve for the markets.

• Trump said on Tuesday that his administration was discussing a 10% punitive duty on Chinese imports.

• Japan's Nikkei .N225 jumped 1.6% on Wednesday, tracking broad gains on Wall Street, as a flurry of new policies from Trump combined with robust corporate earnings bolstered investor optimism.

• Meanwhile, the dollar strengthened 0.23% against the yen to 155.87 yen JPY=EBS. USD/

• A weaker Japanese currency makes yen-denominated assets less affordable to overseas buyers. FRX/

• The front-month rubber contract on the Singapore Exchange's SICOM platform for February delivery STFc1 last traded at 197.3 U.S. cents per kg, up 0.7%.

($1 = 155.8400 yen)

($1 = 7.2814 Chinese yuan)

(Reporting by Michele Pek; Editing by Sherry Jacob-Phillips and Janane Venkatraman)

((michele.pek@thomsonreuters.com;))