TOKYO, Jan 22 (Reuters) – Benchmark TOCOM rubber futures recovered after two days of losses on Friday, gaining more than 1 percent and on track for a weekly rise, as firmer oil prices and equity markets underpinned sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: rose 2.5 yen, or 1.6 percent, to 159.0 yen per kg by 0030 GMT.It was headed for a weekly gain of nearly 1 percent.
Asian stocks gained early on Friday, after the markets were given some breathing space when the European Central Bank hinted of more monetary policy easing, while crude oil extended an overnight rally. MKTS/GLOB
Fading growth and inflation prospects will force the European Central Bank to review its policy stance in March, President Mario Draghi said on Thursday.
Crude rubber inventories at Japanese ports stood at 9,973 tonnes as of Jan. 10, down 2.5 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) jumped more than 3 percent in Friday trade, after the Draghi remarks raised stimulus hopes.
Oil prices rebounded over $1 a barrel from 12-year lows on Thursday, their biggest daily gain this year, as rallying financial markets gave some bearish traders reason to take profits on record short positions.
The dollar rose against the Japanese yen to around 117.75 yen JPY= early on Friday.The greenback had fallen to below 116 yen on Wednesday, its lowest since January 2015.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0800 France Markit manufacturing flash PMI Jan
0830 Germany Markit manufacturing flash PMI Jan
0900 Euro zone Markit manufacturing flash PMI Jan
0930 Britain Retail sales Dec
1330 U.S. National activity index Dec
1445 U.S. Markit manufacturing flash PMI Jan
1500 U.S. Existing home sales Dec
1500 U.S. Leading index Dec
(Reporting by Yuka Obayashi; Editing by Himani Sarkar)
