TOKYO, Oct 23 (Reuters) – Key TOCOM rubber futures inched up from a three-week low early on Tuesday, tracking strengthening shares and a weaker yen on expectations the Bank of Japan will ease monetary policy next week.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for March delivery was up 0.2 percent, or 0.4 yen, at 254.8 yen per kg as of 0045 GMT.
* The BOJ is leaning toward easing monetary policy again, according to sources familiar with its thinking, with policymakers discussing additional steps that could come together with a further increase in its asset buying scheme.
* On Monday, a slew of economic reports offered the latest evidence that Japan, the world’s third-biggest economy was struggling to sustain its momentum in the face of global headwinds and cooling demand and investment at home.
* Exports tumbled by 10.3 percent in the year to September, their sharpest decline since the aftermath of the March 2011 earthquake, and business sentiment hurt by the territorial stand-off with China, Japan’s top export market, hit its lowest since 2010.
* Indian natural rubber futures, which lost nearly 4 percent last week, are likely to tread water this week as tyre makers are raising purchases at lower levels, negating the impact of higher supplies.
MARKET NEWS
* The yen sagged to a three-month low against the U.S. dollar on Tuesday, while the Nikkei share average rose to a four-week high on the expectations for easing by the BOJ.
* U.S. crude futures rose above $89 in early Asian trade on Tuesday, recovering from a two-week low in the previous session as focus switches back to supply concerns on growing violence in the Middle East from worries about the health of the global economy.
DATA EVENTS
* The following data is expected on Tuesday:
– 0645 France Business climate for October
– 1145 U.S. ICSC weekly chain store sales
– 1255 U.S. Redbook weekly retail sales
– 1300 Canada BoC rate decision
– 1400 Richmond Fed manufacturing, services indexes
– 1400 Euro zone Consumer confidence for October
– 2030 U.S. API weekly crude stocks
– U.S. Federal Reserve begins two day monetary policy meeting
(Reporting by Yuko Inoue; Editing by Joseph Radford)
Source: Reuters
