Trader's Highlight

DJI-NEW YORK, June 14 (Reuters) - U.S. stocks posted their biggest gains in nearly two months on Tuesday as retail sales figures allayed fears over the economy that had driven a six-week slump in the market.

Many analysts said the rally was likely a one-day wonder. Though still weak, the retail sales data was not as bad as most had expected, which provided an excuse to buy after the market had neared its most oversold conditions in a year.

The Dow Jones industrial average .DJI gained 123.14 points, or 1.03 percent, to 12,076.11. The Standard & Poor's 500 Index .SPX rose 16.04 points, or 1.26 percent, to 1,287.87. The Nasdaq Composite Index .IXIC advanced 39.03 points, or 1.48 percent, to 2,678.72.

NYMEX-NEW YORK, June 14 (Reuters) - U.S. crude oil futures extended gains in post-settlement trading on Tuesday after industry data showed that domestic crude inventories fell twice more than the forecast in a Reuters poll.

The late price surge followed a session rebound that led to a 2 percent gain at settlement, buoyed by supportive U.S. and Chinese economic data that eased some concerns about global oil demand.

The American Petroleum Institute said that for the week to June 10, crude stockpiles fell 3 million barrels, against the poll forecast of down 1.5 million barrels.API/S

On the New York Mercantile Exchange at 4:56 p.m. EDT (2056 GMT), crude for July delivery CLN1 was up $2.15, or 2.21 percent, at $99.45 a barrel, after extending the day's high to $99.54.

CBOT-SOYBEANS-Chicago Board of Trade soybean futures closed lower, pressured by better U.S. crop weather and news China was again raising its bank reserve requirement in an attempt to tame inflation.

A few showers this week may disrupt soybean plantings in the U.S. Midwest, but the moisture was seen as beneficial to sown corn and soybean crops. Overall, warmer and drier weather also seen boosting crop growth and development.

Goldman Sachs GS.N said, on Tuesday, it continues to expect higher corn and soybean prices and range-bound wheat and cotton prices as adverse weather conditions delayed U.S. planting this spring.

FCPO-KUALA LUMPUR, June 14 (Reuters) - Malaysian palm oil futures made little headway on Tuesday, with the market split between rising vegetable oil supplies and strong demand expectations.

Palm oil may come under further pressure as an improved U.S. soy crop will lead to more crushing into soyoil -- swelling global supplies at a time when palm oil stocks in Malaysia hit a 16-month high last month. [nL3E7H80Y2]

But strong demand as China restocks and Muslim countries snap up palm-based cooking oil cargoes ahead of Ramadan in August could limit losses. Traders are looking out for cargo surveyor reports on June 1-15 Malaysian palm oil exports.

The benchmark August crude palm oil contract KPOc3 on Bursa Malaysia Derivatives Exchange fell 7 ringgit to 3,253 ringgit ($1,069.54) per tonne but staying well above one month lows of 3,199 ringgit hit the previous day. Overall traded volume fell to 21,936 lots of 25 tonnes each, from the usual 25,000 lots.

REGIONAL EQUITIES-BANGKOK, June 14 (Reuters) - Some Southeast Asian stock markets edged higher on Tuesday as optimism about domestic demand lifted consumer stocks and a recovery in crude prices helped resource shares, but investors remained wary of a possible Greek debt default and the faltering U.S. economy.

Stocks in Indonesia .JKSE snapped a four-session losing streak, although turnover fell to half its 30-day average. Southeast Asia's second best performer this year gained foreign inflows of $210 million, the biggest in more than two months.

In a report on Tuesday, Morgan Stanley said it was changing its sector preference from global commodities to structural domestic plays, with a recent upgrade of Indonesian banks to attractive, and it did not now expect the Indonesian central bank to raise rates in the second half.

A combination of factors such as global commodity price softening, a slowdown in global growth momentum and a decline in Indonesian food prices had reduced the risk of a spike in inflationary pressure and further tightening in 2011, it said.