TOKYO, Dec 21 (Reuters) – Benchmark TOCOM rubber futures held steady on Monday as investors hesitated to take fresh positions ahead of the December contract expiry later in the day, despite a surge in the yen against the U.S.dollar.
A higher Japanese currency, which rose on views the Bank of Japan may not ease policy as much as expected, makes yen-denominated assets less affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was unchanged at 162.7 yen per kg as of 0046 GMT, after posting a weekly decline of 3.2 percent. RUB/T
The Bank of Japan maintained its money printing drive at the current rate on Friday, but reorganised its massive stimulus programme to advance premier Shinzo Abe’s plans to prod reticent companies into boosting wages and investment.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 6.4 percent from the prior Friday, the exchange said on Friday.
MARKET NEWS
The U.S.dollar tumbled against the yen on Friday after the BOJ tweaked its monthly asset-purchase program in a way that traders viewed as minor, suggesting that the central bank may not ease policy as much as expected.
It was quoted around 121.33 yen JPY= early on Monday. FRX/
Oil prices fell about half a percent on Friday after the U.S.oil rig count unexpectedly rose for the first time in five weeks, pressuring a market already at seven-year lows.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Monday trade after global equity markets fell sharply on Friday as slumping oil prices raised concerns about slower growth.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0700 Germany Producer prices Nov
1330 U.S. National activity index Nov
1500 Euro zone Consumer confidence flash Dec
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
