TOKYO, Dec 18 (Reuters) – Benchmark TOCOM rubber futures edged down in thin trade on Friday, putting it on track for a second weekly loss, as slumping prices of oil and other commodities weighed on market sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: fell 2.1 yen, or 1.3 percent, to 161.3 yen per kg by 0050 GMT, after snapping a 5-day losing streak the previous day.It is headed for a weekly decline of nearly four percent.
The U.S.Federal Reserve’s widely expected interest rate hike and its pledge to implement monetary tightening gradually removes one source of uncertainty for the Bank of Japan, allowing it to hold off on expanding stimulus at the year’s final BOJ rate review on Friday.
MARKET NEWS
Oil prices fell more than 1 percent on Thursday, with global benchmark Brent settling not far from 2004 lows, after fresh supply builds at the delivery point for U.S.crude futures added to worries about a global glut.
Zinc prices sunk to their lowest in nearly 6-1/2 years on Thursday and other industrial metals also fell as the dollar firmed after the first U.S.rate increase in nearly a decade.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.8 percent in Friday trade after U.S.stocks dropped the previous day on persistent concern over faltering global economic growth.
Ahead of the BOJ’s policy review, the dollar reached its highest in over a week against the Japanese currency at 122.88 JPY= before stepping back to 122.51. FRX/
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0130 China House prices Nov
0745 France Producer prices Nov
0900 Euro zone Current account Oct
1445 U.S. Markit services PMI flash Dec
(Reporting by Yuka Obayashi; Editing by Michael Perry)
