TOKYO, Nov 19 (Reuters) – Benchmark TOCOM rubber futures were steady on Thursday, hovering near a six-year low hit earlier this month, as investors were hesitant to unwind short positions amid nagging worries about softening economic growth in top buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: was down 0.1 yen at 157.4 yen per kg at 0120 GMT, after ending flat the previous day. It hit a low of 153.0 yen on Nov.6, the lowest since July 2009.
Federal Reserve officials on Wednesday continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction.
Japan’s exports fell 2.1 percent in October, posting the first year-on-year decline in more than a year, Ministry of Finance data showed on Thursday, underscoring weak external demand hit by China’s slowing growth.
With oil, copper and coal trading around their lowest levels since the global financial crisis, some investors are betting that the bottom may be close for these critical commodities and have increased their long positions in the market.
MARKET NEWS
The U.S. dollar was steady on the yen at 123.51 (JPY=>) on Thursday, after touching a three-month peak of 123.67.
Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.5 percent in Thursday trade as Wall Street bounced on expectations the Federal Reserve would be confident enough of the U.S.economy to raise rates in December.
U.S.crude oil prices edged up in early trading in Asia on Thursday but were struggling to break away from the $40 per barrel mark as oversupply and high inventory levels ensure an ongoing glut.
Base metals hit multi-year lows on Wednesday as fears persisted over waning demand in top metals user China.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0130 US Initial Jobless Claims
0130 US Philly Fed Business Index for Nov
(Reporting by Yuka Obayashi; Editing by Michael Perry)
