TOKYO, Sept 28 (Reuters) – Benchmark TOCOM rubber futures inched higher on Monday, helped by technical-buying and bargain-hunting after two straight weeks of falls, but gains are likely to be capped by nerves over slowing demand in top consumer China.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for March delivery had risen 0.9 yen, or 0.5 percent, to 170.4 yen per kg by 0040 GMT, after ending last week with a 1.1-percent decline. RUB/T
- The U.S.economy expanded more than previously estimated in the second quarter on stronger consumer spending and construction, backing the case for an interest rate rise before the end of the year despite data sounding a note of caution for September.
- Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 8.4 percent from a week earlier, the bourse said on Friday.
MARKET NEWS
- The U.S. dollar was quoted around 120.30 yen on Monday, following a relatively uneventful weekend with the dollar showing potential for gains if upcoming data strengthen the case for a hike in interest rates this year.
- Japan’s benchmark Nikkei stock average was down 1 percent in Monday trade, after world equity markets advanced on Friday to end a rocky week on an upbeat note after Federal Reserve Chair Janet Yellen said the central bank was on track to raise interest rates this year. MKTS/GLOB
- Oil prices rose for the second straight day on Friday, supported by a rally on Wall Street and a lower U.S.rig count, although the decline in drilling was the smallest in four weeks and not particularly exciting to traders.
- Copper saw its biggest weekly drop since mid-January on Friday as a stronger dollar added to long-standing worries over weakening demand growth in China and ample supplies. MET/L
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
- 1230 US Personal consumption, income Aug
- 1230 US Core PCE Price index Aug
- 0200 US Pending Home Sales Aug
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
