Trader's Highlight

DJI-NEW YORK, Nov 2 (Reuters) - U.S. stocks rose on Tuesday on the expectation the midterm election and a Federal Reserve decision would create a more business-friendly environment, though many traders forecast a selloff in the days ahead.

The S&P 500 index has risen almost 14 percent since September on speculation of Republican congressional gains and new measures by the Federal Reserve to stimulate the economy.

The Dow Jones industrial average <.DJI> was up 64.10 points, or 0.58 percent, at 11,188.72. The Standard & Poor's 500 Index <.SPX> was up 9.19 points, or 0.78 percent, at 1,193.57. The Nasdaq Composite Index <.IXIC> was up 28.68 points, or 1.14 percent, at 2,533.52.

NYMEX-NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures ended higher on Tuesday, hitting the highest level in six months, as the dollar fell ahead of an expected action by the Federal Reserve to inject more money into the flagging economy.

Qatar said oil prices in the $70-$90 range would be reasonable, echoing similar comments from Saudi Arabia on Monday, and that also helped push crude prices higher.

On the New York Mercantile Exchange, December crude settled up 95 cents, or 1.15 percent, at $83.90 a barrel, the highest close since May 3, when front-month crude finished at $86.19. December crude, which rose for a second day in a row, traded from $82.83 to $84.34.

CBOT-CHICAGO, Nov 2 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - November down 1-1/2 cents at $12.23-3/4 per bushel; January down 1 at $12.34. Market pressured by technical selling and forecasts for better crop weather in South American soy regions. Prices underpinned by weak dollar and firm crude oil.

CBOT-SOYOIL - December down 0.12 cent at 49.63 cents per lb. Following soybeans lower.

FCPO-KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures eased from a 27-month high on Tuesday on some profit-taking although concerns over a strong monsoon season hitting yields lingered.

A weaker U.S. dollar against a basket of currencies limited losses in palm oil that is priced in the greenback, making the commodity cheaper. Higher U.S. crude oil also lent support for palm oil and other vegetable oil prices.

Malaysian palm oil prices are starting to pick up, gaining 16 percent so far this year compared with U.S. soyoil's 23 percent rise and China's soyoil 19 percent gain because of a weaker dollar and, now, weather concerns.

January 2011 crude palm oil futures on the Bursa Malaysia Derivatives Exchange rose as much as 1 percent to 3,106 Malaysian ringgit ($1,004) per tonne -- a level unseen since July 28, 2008.

But the contract gave up gains to settle 2 ringgit lower at 3,090 ringgit per tonne. Overall traded volume stood at 12,719 lots of 25 tonnes.

REGIONAL EQUITIES-COLOMBO, Nov 2 (Reuters) - The Philippine stock market hit a record high on Tuesday, helped by foreign buying, but most other Southeast Asian markets fell as cautious investors stayed on the sidelines ahead of a Fed decision on quantitative easing measures.

Net foreign inflows of $8.6 million helped take the Philippine index to a record close of 4,341.74, surpassing its previous high from Oct. 26.

However, other markets in the region ended mixed as investors were wary of the size and the impact of the QE measure, which will be decided when a Federal Reserve meeting ends on Wednesday.

Indonesia <.JKSE> fell 0.5 percent, Malaysia <.KLSE> edged down 0.2 percent, and Vietnam ended 1.1 percent weaker.

Bucking the trend, Singapore <.FTSTI> rose 0.4 percent and Thailand edged up 0.2 percent, hitting another 14-year high, despite a net outflow of foreign funds worth $25.2 million.

In Singapore, palm oil firm Wilmar International gained 2.2 percent, while second-biggest lender Oversea-Chinese Banking Corp rose 0.9 percent.

Breaking News - RTRS - MALAYSIA'S NEW REPLANTING SCHEME TO TARGET 365,000 HECTARES OF OIL PALMS OVER 2-3 YRS -MPOB CHAIRMAN

KUALA LUMPUR, Oct 29 (Reuters) - The Malaysian government's new replanting scheme will target 365,000 hectares of oil palms older than 25 years as the world's No.2 palm oil producer tries to lift flagging output, a top industry official said on Friday.

Industry regulator the Malaysian Palm Oil Board's (MPOB) new chairman, Shahrir Samad, said the scheme would take two to three years to complete and the government had pledged 297 million Malaysian ringgit ($95.56 million) under the 2011 budget.

The scheme is the latest inItiative to boost yields in Malaysia, which has fallen behind top producer Indonesia in terms of output. An earlier industry-funded scheme to replant 200,000 hectares in 2008 in a bid to boost slumping prices was almost completed this year.

Breaking News - RTRS - INTERVIEW-India urged to cut import duty on green palm oil

KUALA LUMPUR, Nov 1 (Reuters) - A vegetable oils industry body has asked the Indian government to cut its tax on eco-friendly imports of the commodity by one to two percent in a bid to boost consumption, a top trader said on Monday.

India, the world's largest vegetable oil buyer, appears to be heeding a call for large consumers to become more environmentally friendly and buy palm oil from estates committed to protecting forests in Southeast Asia.

Dorab Mistry, head of vegetable oils trading arm of Godrej International and a leading analyst, said the firm's parent spearheaded the Hindustan Unilever coalition of refiners and traders that put the proposal to the government.

Trader's Highlight

DJI-NEW YORK, Nov 1 (Reuters) - Investors were reluctant to make big bets ahead of two events that could dictate the stock market's direction for the rest of the year and beyond, leaving shares little changed on Monday.

U.S. factory activity in October expanded and construction spending rose unexpectedly in September, reports showed. Other data showed manufacturing in China expanded at the fastest pace in six months in October.

The Dow Jones industrial average <.DJI> was up 6.13 points, or 0.06 percent, at 11,124.62. The Standard & Poor's 500 Index <.SPX> was up 1.12 points, or 0.09 percent, at 1,184.38. The Nasdaq Composite Index <.IXIC> was down 2.57 points, or 0.10 percent, at 2,504.84.

NYMEX-NEW YORK, Nov 1 (Reuters) - U.S. crude oil futures ended nearly 2 percent higher on Monday, boosted by comments from the Saudi Arabian oil minister that an oil price between $70 and $90 a barrel was comfortable for consumers.

Expectations that the U.S. Federal Reserve will announce a second round of quantitative easing to help boost the U.S. economy, upbeat manufacturing data from China and the United States, and early weakness in the U.S. dollar encouraged fund buying, analysts said.

On the New York Mercantile Exchange, crude for December delivery settled up $1.52, or 1.87 percent, at $82.95 a barrel, trading from $81.32 to $83.86.

CBOT-CHICAGO, Nov 1 (Reuters) - Chicago Board of Trade grain and soy complex close on Monday.

CBOT-SOYBEANS - November down 3/4 cent at $12.25-1/4 per bushel; January down 1 at $12.35. Scattered rainfall and more seasonal temperatures help ease stress for soybeans in northern Brazil and rain may encourage additional planting in the area. Periodic rainfall will maintain favorable conditions for early planted corn and soybeans in Argentina and the next chance of rain appears to be for this coming weekend.

CBOT-SOYOIL - December up 0.45 cent at 49.75 cents per lb. Support from gains in crude oil.

FCPO-KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures hit a new 27-month high on Monday on concern heavy rains may affect palm oil yields and a weak dollar trend lent support.

The dollar has come under pressure against most major currencies as the market anticipates the U.S. Federal Reserve will step up money printing after its policy meeting on Tuesday and Wednesday.

Benchmark Malaysian crude palm oil futures rose as much as 1.2 percent to 3,098 Malaysian ringgit ($1,002) per tonne -- a level unseen since July 28. 2008 and a touch below a key resistance level.

The contract ended at 3,092 ringgit. Overall traded volume stood at 14,307 lots of 25 tonnes each, down from the usual 10,000 lots.

REGIONAL EQUITIES-COLOMBO, Nov 1 (Reuters) - Southeast Asian stock markets rose on Monday on hopes of good demand for the region's exports as data from China and India showed strong production growth, ahead of possible quantitative easing measures in the United States.

Indonesia <.JKSE>, the region's best bourse with a gain of around 44 percent this year, rose 0.3 percent after an early drop, Singapore <.FTSTI> jumped 1.6 percent, Thailand <.SETI> closed 1.9 percent firmer and Malaysia <.KLSE> gained 0.3 percent.

Vietnam <.VNI> bucked the trend with a 0.4 percent fall, while the Philippines <.PSI> was closed for a holiday.

In Singapore, second-biggest lender Oversea-Chinese Banking Corp posted a 27 percent rise in quarterly profit, beating expectations, and its shares rose 2.3 percent.

Despite a net foreign outflow of $58.4 million on Monday, banking shares helped lift the Indonesian index, with a rise of over 13 percent in Bank Mega and Bank Thabungan PN .