TOKYO (July 10): Benchmark Tokyo rubber futures edged higher on Friday, helped by stronger Shanghai futures on the back of a recovery in China’s stock prices, but the contract booked a sixth straight weekly loss amid concerns over Chinese equities and the Greek debt crisis.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery <0#2JRU:> finished 1.4 yen, or 0.7 percent, higher at 211.0 yen ($1.73) per kg.
For the week, it lost 3.7 percent, marking its biggest single-week loss in three months.
“Stronger share prices in China, backed by the government’s measures, helped boost Shanghai rubber futures and TOCOM prices,” a Tokyo-based dealer said.
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The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 140 yuan to finish at 12,165 yuan ($1,959.19) per tonne.
Chinese stocks bounced sharply for the second day on Friday, reversing an early-week slump in frenetic trading as markets regained a measure of composure following a barrage of government support steps to stem the rout.
“But given cloudy outlook of China’s car sales, the state of the economy looks dull. Despite the rebound in Chinese share prices, investors are expected to remain bearish next week,” the dealer said.
China’s automakers association cut its 2015 forecast for vehicle sales growth to a meagre 3 percent on Friday as a major slump in the country’s stock market depresses sales to consumers concerned about economic prospects.
Greeks awoke on Friday hoping their government would finally seal a cash-for-reforms deal with its international creditors after Prime Minister Alexis Tsipras offered last-minute concessions to try to save the country from bankruptcy.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 143.7 U.S. cents per kg, down 0.9 cent.
($1 = 122.1400 yen) ($1 = 6.2092 Chinese yuan)
– Reuters
