TOKYO, Jan 18 (Reuters) – Benchmark TOCOM rubber futures fell more than 1 percent on Monday, tracking oil prices that slumped to their lowest since 2003, while a firmer yen also dragged on the market.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: fell 2.3 yen to 155.4 yen per kg by 0018 GMT, after settling up 0.4 yen on Friday. Prices hit a seven-year low of 144.5 yen last Tuesday on worries over a slowing Chinese economy, but have risen more than 7 percent since then after key producer Thailand said it would buy rubber from its farmers at above-market prices.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.1 percent from the previous week, the exchange said on Friday.
MARKET NEWS
The U.S. dollar was quoted around 116.96 yen JPY= , compared with around 117.61 yen on Friday afternoon.A stronger yen makes Japanese currency-denominated assets more expensive for holders of other currencies.
Japan’s benchmark Nikkei stock average .N225 was down 2.1 percent.
Brent and U.S.crude futures fell to the lowest since 2003 in Asian trading on Monday as the market braced for a jump in Iranian oil exports following the lifting of the sanctions at the weekend.
Copper tumbled to its lowest since May 2009 on Friday, pressured by a slide in oil prices plus further losses in shares and the offshore currency in China, where weak loan data undermined sentiment. MET/L
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0130 China House prices Dec
(Reporting by Osamu Tsukimori; Editing by Himani Sarkar)
