TOKYO, Dec 4 (Reuters) – Benchmark TOCOM rubber futures edged down on Friday, pressured by a stronger yen and as some investors took profits after a three-day rally, but the contract was still heading for its biggest weekly gain in three months.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: had fallen 0.3 yen to 170.4 yen per kg by 0040 GMT, after rising for a third straight session and hitting a fresh 6-week high the previous day.
For the week, the contract was on track to post a nearly 5-percent gain, the biggest weekly increase since early September.
The European Central Bank (ECB) eased policy further on Thursday to fight stubbornly low inflation, but kept much of its powder dry, disappointing high market expectations for greater stimulus.
China agreed to buy rice and rubber from Thailand, the Thai commerce ministry said on Thursday.
India’s trade minister said small rubber growers should be protected from cheaper imports.
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) dipped 1.8 percent on Friday after U.S.and European stocks fell sharply the previous day and the euro enjoyed its biggest one-day percentage rise in well over six years as investors reacted to the ECB’s latest policy easing measures.
Against the yen, the U.S. dollar slipped towards the bottom of a 122.23-123.77 range and last stood at 122.64 yen JPY= as the heavy selling in the dollar against the euro saw the greenback lose ground against many of its peers. FRX/ A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Copper, zinc and nickel hit one-week lows on Thursday as bearish speculators shrugged off a retreat in the dollar and instead focused on weaker demand in top metals user China.
Crude prices settled up about 3 percent on Thursday, the eve of an OPEC meeting, as traders who expect no cuts in the group’s output hedged their positions in case of a surprise outcome at the gathering of the world’s largest oil producers.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
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0700 Germany Industrial orders Oct
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1330 U.S. Nonfarm payrolls Nov
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1330 U.S. Unemployment rate Nov
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1330 U.S. International trade Oct
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
