TOKYO, Dec 9 (Reuters) – Benchmark TOCOM rubber futures edged up in early Wednesday trade on the back of a rise in U.S.crude futures, but the gains were limited amid worries over Chinese demand.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: rose 0.4 yen to 171.2 yen per kg by 0023 GMT, after settling down 2.8 yen on Tuesday. The contract on Tuesday hit a near two-month high of 174.8 yen.
China’s trade performance remained weak in November, casting doubt on hopes that the world’s second-largest economy would level off in the fourth quarter.
Thailand on Tuesday approved $139 million in additional loans to help rubber farmers in the Southeast Asian country hit by weak global prices of the commodity.
MARKET NEWS
U.S. oil prices rose more than 1 percent on Wednesday, recovering from near seven-year lows hit a day earlier, after industry data reported a surprise drop in U.S.crude inventories.
The U.S. dollar was quoted around 122.92 yen JPY= , compared with around 123.08 yen on Tuesday afternoon.
Japan’s benchmark Nikkei stock average .N225 was down 0.6 percent.
Copper prices rose on Tuesday as the dollar slipped, but gains were capped by trade data from top consumer China, which fuelled worries about demand growth in the top consumer of the metal.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0130 China Consumer prices Nov
0130 China Producer prices Nov
0700 Germany Trade data Oct
1500 U.S. Wholesale inventories Oct
(Reporting by Osamu Tsukimori; Editing by Michael Perry)
