TOKYO, May 20 (Reuters) - Benchmark TOCOM rubber futures inched down on Tuesday, after jumping more than 4 percent in the previous session, as worries about China's economy capped gains driven by a fall in inventories.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for October delivery traded 0.3 yen lower at 206.2 yen as of 0001 GMT.
The benchmark contract rose more than 4 percent on Monday, tracking a 5 percent rise in Shanghai futures after inventories in Shanghai fell to their lowest since December. The Tokyo market has fallen about 25 percent this year on concerns over economic growth in China.
* Rubber output in top producer Thailand is expected to rise as much as 5 percent in 2014, fuelled by maturing plantations, but an increase in demand may prop up prices, a senior industry official told Reuters on Monday.
"I'd say production will increase by 3 to 5 percent maximum," said Bundit Kerdvongbundit, secretary-general of the Thai Rubber Association.
* Erratic weather triggered by the El Nino weather phenomenon could cut rubber output in Indonesia, the second-largest producer, by around 3 percent to 3 million tonnes this year, a senior industry official said.
"Output may fall by 100,000 tonnes this year," Asril Sutan Amir, adviser to the Indonesian Rubber Association (GAPKINDO), said on Monday, ahead of a rubber summit in Singapore.
Inventories in warehouses monitored by the Shanghai Futures Exchange dipped 2.2 percent week-on-week to their lowest level since December at 163,097 tonnes (SNR-TOTAL-DW). However, stocks in Qingdao are estimated to have increased to around 362,000 tonnes from around 360,000 tonnes last week and 290,000 tonnes in January.
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MARKET NEWS
* U.S. stocks rose on Monday, with a rally in high-growth names among Internet and biotech shares giving the Nasdaq a gain of almost 1 percent.
* The dollar stood at 101.45 yen, holding close to Monday's low of 101.11, its weakest since early February.
* U.S. oil prices rose to near one-month highs on Monday as a weak dollar prompted buying a day before the June contract's expiration, while Brent prices fell as slumping global equities outweighed the impact of low Libyan output.
* Japan's Nikkei share average was up 0.54 percent.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
- 0600 Germany Producer prices April
- 0800 Italy Industrial orders March
- 1145 U.S.
Weekly ICSC chain store sales
(Reporting by Osamu Tsukimori; Editing by Ed Davies)