TOKYO, Feb 15 (Reuters) – Benchmark TOCOM rubber futures rose more than 2 percent on Monday, having lost 5 percent last week, as investors covered short positions after a sharp rebound in oil prices last Friday and a stronger Nikkei stock index boosted market sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: was up 3.5 yen, or 2.4 percent, at 150.6 yen ($1.33) per kg as of 0040 GMT, after climbing more than three percent earlier to a high of 152.3 yen. It dropped 5 percent last week, marking a third straight weekly loss.
Chinese markets will resume trading on Monday after the long Lunar New Year holiday.
Japan’s economy contracted an annualised 1.4 percent in the final quarter of last year as consumer spending slumped, adding to headaches for policymakers already wary of damage the financial market rout could inflict on a fragile recovery.
U.S.consumer spending regained momentum in January as households ramped up purchases of a variety of goods, in a sign that economic growth was picking up after slowing to a crawl at the end of 2015.
The energy minister of the United Arab Emirates said OPEC members are ready to cooperate on a production cut, although non-OPEC producers are holding off on output increases amid current prices, the Wall Street Journal reported on Thursday.
Volkswagen (VLKPF) group sales returned to growth in January thanks to demand in China, where core brand VW posted its best month ever despite the furore over the German carmaker’s cheating of U.S.diesel emissions tests.
MARKET NEWS
Global oil prices surged as much as 12 percent on Friday after a report once again suggested OPEC might finally agree to cut production to reduce the world glut, while a bounce in stock markets fed appetite for risk. O/R
Japan’s benchmark Nikkei stock average (XC0009692440) was up more than 4 percent in Monday trade after U.S. and European shares rebounded from recent weakness on Friday, with reassuring U.S.retail sales data boosting sentiment.
The yen nursed losses early on Monday, having retreated from its highest in over a year as a rally in European and U.S.stocks late last week dulled demand for the safe-haven currency.
The yen stood at around 113.50 yen JPY= against the U.S.dollar early on Monday.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
China Trade data Jan
1000 Euro zone Eurostat trade Dec
No exact time for China data
($1 = 113.5000 yen)
(Reporting by Yuka Obayashi)
