TOKYO, Feb 24 (Reuters) – New benchmark TOCOM rubber futures slipped on Wednesday, falling from a near 3-week high hit the previous session, as a sell-off in crude oil and the Nikkei stock index led investors to book profits, while the yen’s rise also weighed on market sentiment.
FUNDAMENTALS
The new Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: fell 2.8 yen, or 1.8 percent, from an opening price of 155.8 yen per kg to 153.0 yen ($1.37) by 0030 GMT. The benchmark touched a high of 157.7 yen on Tuesday, marking the highest since Feb.4.
The February contract expired at 144 yen on Tuesday.
China’s new securities regulator Liu Shiyu, a former central banker, has a tough job on his hands – not least managing a huge weight of expectation from millions of small investors smarting from a recent stock market collapse.
MARKET NEWS
Oil prices tumbled 4 percent on Tuesday after Saudi Oil Minister Ali Al-Naimi ruled out production cuts, and extended losses after settlement when a U.S.industry trade group API said domestic crude stockpiles swelled by more than twice what analysts had expected.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 1.5 percent in Wednesday trade as a nascent recovery in the oil market lost momentum after Saudi oil minister effectively ruled out production cuts by major producers anytime soon. MKTS/GLOB
The U.S. dollar was quoted around 111.95 yen JPY= early on Wednesday, after the yen rallied the previous day as a recent rebound in stocks and crude oil faded, renewing demand for both safe-haven currencies. FRX/ A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0745 France Consumer confidence Feb
0900 Italy Industrial sales and orders Dec
1330 U.S. Initial jobless claims Weekly
1445 U.S. Markit services PMI flash Feb
1500 U.S. New home sales Jan
($1 = 111.9600 yen)
(Reporting by Yuka Obayashi; Editing by Michael Perry)
