TOKYO, Oct 23 (Reuters) – Benchmark TOCOM rubber futures surged on Friday, snapping a 5-day losing streak on higher stock prices and a weaker yen after the European Central Bank opened the door to more stimulus as early as December. The contract is still headed for a weekly loss amid fears over softer demand in China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for March delivery JRUc6 0#2JRU: was trading up 3.9 yen, or 2.4 percent, to 168.0 yen per kg by 0049 GMT, after touching a high of 169.3 yen.The rise lifted the market from a 1-1/2 month low touched the previous day.
For the week, the benchmark is on track for a second weekly decline. RUB/T
The ECB, as widely expected, took no new steps on Thursday, but its President Mario Draghi signalled that it could extend its 1 trillion euro bond-buying quantitative easing program if necessary to combat weak inflation.
U.S.home resales rebounded strongly in September and new applications for unemployment benefits hovered around 42-year lows last week, pointing at solid domestic fundamentals even as the global economy falters.
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) was up more than 2 percent in Friday trade, following a rally in the U.S.and European stocks after the ECB meeting.
The low-yielding yen dropped to a one-month low of 120.78 to the dollar JPY= on Thursday. It last stood at 120.90 on Friday. FRX/
Crude oil inched higher on Thursday as gains prompted by a rally in gasoline and technical charts calling for higher prices were capped by worries about high U.S.crude inventories.
Copper climbed on Thursday after four sessions of losses, buoyed by another production cutback by producer Freeport and strong Chinese import data, though analysts cautioned that underlying demand remains weak. MET/L
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
- 0130 China House prices Sep
- 0700 France Markit manufacturing flash PMI Oct
- 0730 Germany Markit manufacturing flash PMI Oct
- 0800 Euro zone Markit manufacturing flash PMI Oct
- 1345 U.S. Markit manufacturing flash PMI Oct
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
