TOKYO, Oct 7 (Reuters) – Benchmark TOCOM rubber futures hit the highest level in nearly three weeks on Wednesday on the back of a jump in global oil futures and data showing a drawdown in rubber inventories.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for March delivery rose 0.9 yen to 174.7 yen per kg by 0017 GMT, after settling up 2.9 yen on Tuesday.
- The benchmark contract earlier rose as high as 175.5, the highest since Sept.17.
- Crude rubber inventories at Japanese ports stood at 12,184 tonnes as of Sept. 20, down 2.8 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday.
- Chinese financial markets are closed for national holidays, and will reopen on Thursday.
MARKET NEWS
- Oil prices jumped more than $2 a barrel on Tuesday, breaking out of a month-long trading range on technical buying and industry talk as well as U.S.government data suggesting the global supply glut could be ebbing.
- Japan’s benchmark Nikkei stock average .N225 was up 0.1 percent. MKTS/GLOB Copper prices were steady on Tuesday, supported by falling inventories and output cuts, but persistent concerns about demand growth in top consumer China kept a lid on the market.
- The U.S. dollar was quoted around 120.23 yen JPY= early on Wednesday, steady from Tuesday afternoon.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
-0600 Germany Industrial output Aug
-0645 France Trade data Aug
-1900 U.S. Consumer credit Aug
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)
