Trader's Highlight

DJI-NEW YORK, Nov 12 (Reuters) - U.S. stocks fell on Friday as inflation worries in China prompted investors to book profits and reassess whether to keep their bullish positions.

Reflecting the concerns, the CBOE Volatility Index <.VIX> jumped 10.8 percent to 20.66, the first time for the index to rise above 20 in over a week. The CBOE Nasdaq 100 Volatility Index <.VXN> also surged 16.4 percent to 22.55.

The Dow Jones industrial average <.DJI> dropped 106.83 points, or 0.95 percent, to 11,176.27. The Standard & Poor's 500 Index <.SPX> fell 16.13 points, or 1.33 percent, to 1,197.41. The Nasdaq Composite Index <.IXIC> slid 37.25 points, or 1.46 percent, to 2,518.27.

NYMEX-NEW YORK, Nov 12 (Reuters) - U.S. crude oil futures ended down more than 3 percent on Friday, as talk that China may raise interest rates triggered profit-taking after gains of almost 8 percent in two weeks.

Euro zone debt worries and a report from the Paris-based International Energy Agency, which trimmed its 2011 demand forecast, added pressure.

On the New York Mercantile Exchange, crude for December delivery settled down $2.93, or 3.34 percent, at $84.88 a barrel, having traded from $84.52 to $87.85. Volume was heavy, exceeding the 30-day average by about 11 percent, preliminary Reuters data showed.

CBOT-CHICAGO, Nov 12 (Reuters) - Chicago Board of Trade grain and soy complex futures close on Friday.

CBOT-SOYBEANS - January down 70 cent per bushel limit at $12.69; spot November , expired down 67-1/4 at $12.63. January contract dropped 5 percent to one-week low, hit by China rate-hike worries. Soy was technically overbought and due for a correction.

CBOT-SOYOIL - December down 2.50 cents per lb limit at 52.53 cents per lb. Retreating after extending a 26-month high on continuous price charts, pressured by talk of China may raise interest rates.

FCPO-KUALA LUMPUR, Nov 12 (Reuters) - Malaysian crude palm oil futures tumbled 2.7 percent on Friday amid a sell-off in commodities led by industrial metals and crude oil.

In the first 10 minutes of trade, benchmark January 2011 contract on the Bursa Malaysia Derivatives Exchange fell as much as 2.7 percent to 3,305 ringgit ($1,063.7).

Other vegetable oil markets also fell, pressured mostly by the stronger U.S. dollar as Ireland's fiscal problems gripped financial markets.

REGIONAL EQUITIES-BANGKOK, Nov 12 (Reuters) - Southeast Asian stock markets fell on Friday, led by commodities and banking shares, as investors took profits amid a broad retreat from risky assets.

In addition to increased risk-aversion, a rebound in the U.S. dollar and worries over capital controls dragged on regional indexes.

Malaysia <.KLSE> and Indonesia <.JKSE> both set record highs early this week but lost 0.9 percent and 2.1 percent respectively on Friday.

Singapore lender Oversea-Chinese Banking Corp slid 2.5 percent and Malaysian power producer Tenaga Nasional fell more than 1 percent to a four-month low.