TOKYO, Dec 24 (Reuters) – Benchmark TOCOM rubber futures slid on Thursday on profit-taking after prices rose to a one-week high in the previous session, while a firm yen also weighed on market sentiment. A higher Japanese currency makes yen-denominated assets expensive for holders of other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: fell 1.5 yen, or 0.9 percent, to 167.2 yen per kg by 0102 GMT, after hitting a one-week high of 169.9 yen on Tuesday.
Japanese markets were closed on Wednesday for the Emperor’s birthday.
Many Bank of Japan (BOJ) policymakers complained of slow wage and capital expenditure growth but were optimistic that companies will start to boost spending once emerging economies improved, minutes of the BOJ’s November rate review showed on Thursday. New orders for U.S.manufactured capital goods fell in November and the prior month’s increase was revised sharply lower as the drag on manufacturing from a strong dollar and spending cuts in the energy sector showed little sign of abating.
MARKET NEWS
The dollar was steady against the yen at 120.87 yen JPY= early on Thursday, holding near a one-week low of 120.72 touched on Tuesday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.5 percent, heartened by gains on Wall Street and a recovery in crude oil prices in thin trading ahead of this week’s Christmas holiday.
Oil rose more than 3 percent on Wednesday in thin, pre-holiday trading, buoyed by a surprise drop in U.S.crude inventories, but prices stayed near multi-year lows as global supplies remained abundant and OPEC lowered the demand outlook for its exports.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
1330 U.S. Weekly jobless claims
(Reporting by Yuka Obayashi; Editing by Himani Sarkar)
