Tokyo rubber falls over 1 pct but off morning lows

TOKYO, Sept 5 (Reuters) - Tokyo rubber futures fell more than 1 percent on Friday as investors fled risky assets including commodities after a renewed sell-off in U.S. stocks, paring the previous day's 2.7 percent jump in a technical bounce.

* But U.S. crude oil CLc1 showed some signs of stability on Friday, easing worries that investors will keep unwinding long positions they have built to hedge against inflation.

* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> traded at 312.3 yen per kg as of 0408 GMT, down 4.2 yen or 1.3 percent from Thursday. It earlier fell as much as 2.6 percent to 308.2 yen.

* The TOCOM rubber market has been volatile this week, with views spread between bearishness due to signs of a slowdown in the U.S. economy and bullish factors on the supply side, including a prolonged political crisis in Thailand, the world's top producer.

* On Thursday, the February contract closed at the day's high of 316.5 yen in a late rally led by dealers' short-covering. It had hit a one-week low of 306.4 yen on the same day. On Monday the contract touched a one-month high of 324.9 yen.

* A level around 307 yen is forming as a floor given the commodity's relatively strong fundamentals, said a manager at a Japanese brokerage.

"Rubber comes under pressure whenever selling hits other commodities. But it's been basically range-bound. Selling is lined up when it gets close to 320 yen. But buying emerges at a level below 310 yen," the manager said.

* A national referendum proposed by Thai Prime Minister Samak Sundaravej to end a political crisis was dismissed by critics on Friday as a stalling tactic that would resolve little and simply prolong the unrest. [ID:nBKK228083]

* In the physical market, a weakening Thai baht against the dollar THB=TH undermined prices denominated in the U.S. currency. But the commodity's fundamentals are firm due partly to solid demand from Japanese users.