TOKYO, Jan 27 (Reuters) – Benchmark TOCOM rubber futures climbed on Wednesday as investors bought back short positions ahead of a Federal Reserve policy statement later in the day, but worries over China shares may limit further gains.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: was up 1.5 yen, or 1.0 percent, at 159.8 yen ($1.35) per kg by 0028 GMT, after tanking nearly 4 percent the previous day on weaker equity prices. RUB/T
Wednesday’s main focus will be the outcome of the Fed’s Jan 26-27 policy review.
While the central bank is almost certain to keep interest rates unchanged, investors are keen to see its latest economic outlook given the turbulent start to global financial markets this year.
Thailand’s cabinet on Tuesday approved 15 billion baht ($419 million) in soft loans for rubber production and processing in a bid to boost rubber use and support farmers hit by falling prices.
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.5 percent in Wednesday trade, following an overnight bounce on Wall Street, where upbeat earnings results helped push up the Dow .DJI 1.8 percent and the S&P 500 .SPX 1.4 percent. MKTS/GLOB
The U.S. dollar stood little changed at 118.36 yen JPY= on Wednesday after bouncing overnight from 117.65.The greenback managed to eke out a slim gain on the yen, which softened broadly as a rally on Wall Street dampened demand for the safe-haven Japanese currency.
U.S.crude oil futures dropped more than 3 percent in Asian trading on Wednesday to test the $30 a barrel level again, as profit-taking wiped out most of the gains seen in the previous session linked to hopes for output cuts.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0700 Germany GfK consumer sentiment Feb
0745 France Consumer confidence Jan 1500 U.S. New home sales Dec
1900 Federal Reserve releases statement after 2-day meeting
($1 = 35.8300 baht)
($1 = 118.2700 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
