TOKYO, Dec 8 (Reuters) – Benchmark TOCOM rubber futures dropped more than 1 percent on Tuesday from a nearly two-month high hit in the previous evening session, weighed down as oil prices plunged to their lowest in nearly seven years.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: had fallen 2.6 yen, or 1.5 percent, to 171.0 yen ($1.39) per kg by 0041 GMT. It hit a peak of 174.8 yen, the highest since Oct.15, in evening trade on Monday.
Japan’s economy dodged a technical recession in the third quarter with the initial estimate of a contraction revised to an annualised expansion of 1.0 percent, offering a glimmer of hope for policymakers struggling to end years of stagnation.
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An avalanche of data from China in coming weeks is likely to show economic performance in the world’s second-largest economy remains sluggish, reinforcing expectations that Beijing will release more stimulus measures in months ahead.
MARKET NEWS
Crude oil futures tumbled 6 percent on Monday, reaching their lowest in nearly seven years, after OPEC failed to address a growing supply glut, while a stronger dollar made it more expensive to hold crude positions.
Copper prices fell on Monday alongside oil as a strong dollar reinforced worries about weak demand growth in top consumer China and expectations of surplus metal.
The U.S. dollar was quoted around 123.30 yen JPY= early on Tuesday.
Japan’s benchmark Nikkei stock average (XC0009692440) was steady in Tuesday trade despite a drop in U.S.stocks the previous day, led by the S&P energy index’s biggest one-day percentage drop since late August.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0200 China Trade data Nov
1000 Euro zone Revised GDP Q3
1100 U.S. NFIB business optimism Nov
($1 = 123.2800 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
