TOKYO, Oct 20 (Reuters) – Benchmark TOCOM rubber futures fell for a third session to trade at a 2-1/2 week low on Tuesday, pressured by renewed worries about demand in China after data showing a slowdown in economic growth in the world’s top rubber buyer.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for March delivery JRUc6 0#2JRU: fell 1.6 yen, or 1.0 percent, to 167.1 yen per kg by 0040 GMT, after losing 2 percent the previous day. The contract earlier touched a low of 166.5 yen, the lowest since Oct.2.
China’s quarterly economic growth dipped below 7 percent for the first time since the global financial crisis, data showed on Monday, hurt partly by cooling investment, raising pressure on Beijing to further cut interest rates and take other measures to stoke activity.
MARKET NEWS
Crude oil fell about 4 percent on Monday after a tumble in gasoline futures added pressure to a market slumping on slower growth in China and signs that Iranian oil will return to the market soon following implementation of its nuclear deal. O/R
The U.S. dollar was quoted around 119.48 yen JPY= early on Tuesday, nearly unchanged from late U.S.trade, as investors pondered whether or not the Bank of Japan would take or signal further stimulus steps later this month to bolster the flagging economic recovery.
Japan’s benchmark Nikkei stock average was up 0.6 percent in Tuesday trade, after U.S.stocks ended with slight gains the previous day.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0600 Germany Producer prices Sep
0800 Euro zone Current account Aug
1230 U.S. Housing starts Sep
1230 U.S. Building permits Sep
(Reporting by Yuka Obayashi; Editing by Ed Davies)
