TOKYO, Feb 3 (Reuters) – Benchmark TOCOM rubber futures dipped to a 3-week low on Wednesday, extending losses into a second day on falling oil prices and worries over China’s economy.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: was down 2.9 yen, or 1.9 percent, at 154.0 yen ($1.29) per kg as of 0034 GMT, after touching its lowest since Jan. 14 at 152.8 yen.
U.S.auto sales fared better than expected in January as the industry continued to benefit from low gasoline prices, easy credit and moderate economic growth, major automakers said on Tuesday.
MARKET NEWS
U.S. oil futures extended losses into a third session in early Asian trade on Wednesday as U.S.crude stocks last week surged to more than half a billion barrels, stoking concern over global oversupply.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 2.4 percent in early Wednesday trade as oil prices sank again, prompting investor to seek shelter in safe-haven assets and lifting bonds and gold to multi-month highs. MKTS/GLOB
The U.S. dollar fell roughly 1 percent against the yen to 119.83 yen JPY= after hitting a six-week high on Friday of 121.70 following the Bank of Japan’s shift to negative interest rates.A stronger yen makes yen-denominated assets more expensive when purchased in other currencies.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0145 China Caixin services PMI Jan
0855 Germany Markit services PMI Jan
0900 Euro zone Markit services PMI Jan
1000 Euro zone Retail sales Dec
1315 U.S. ADP national employment Jan
1500 U.S. ISM non-manufacturing PMI Jan
($1 = 119.8100 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
