TOKYO, Jan 6 (Reuters) – Benchmark TOCOM rubber futures extended losses into a third day on Wednesday, sliding to 7-year lows on worries over weaker demand in top buyer China, slumping oil prices and a stronger yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: was down 1.8 yen, or 1.2 percent, at 148.8 yen per kg at 0118 GMT, after touching a low of 148.3 yen, its weakest since March 2009.
Automakers on Tuesday set a new U.S.sales record for 2015 even as December sales fell short of expectations, and most forecasters said sales should rise to another record this year.
Toyota Motor Corp (TOYOF) and its joint venture partners aim to sell 1.15 million vehicles in China this year, undershooting overall expectations for the world’s largest auto market.
MARKET NEWS
The yen held firm near multi-month highs against major currencies on Wednesday as concerns over sluggish global growth and choppy oil and financial markets prompted investors to seek shelter in the low-risk low-return currency. Against the dollar, the yen traded at 118.88 yen JPY= , not far from its 2-1/2-month high of 118.705 touched on Monday.
Oil prices dropped over 2 percent towards their 11-year low on Tuesday, as traders shrugged off growing tensions between two of the world’s biggest oil producers and focused instead on a stronger U.S. dollar and swelling U.S.crude inventories.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.3 percent in Wednesday trade, as floundering crude oil prices continued to dampen risk sentiment. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0855 Germany Markit Services
0900 Euro zone Market Services final PMI Dec
1000 Euro zone producer prices final Dec
1500 US Durable Goods for November
1500 US Factory Orders for November
1500 US ISM Non-Mfg PMI
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
