TOKYO, March 2 (Reuters) – Benchmark TOCOM rubber futures rose to a 1-month high on Wednesday as signs of recovery in the U.S.manufacturing sector and higher oil prices eased worries about a global slowdown, while a fall in the yen lent support.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was up 1.7 yen, or 1.1 percent, at 158.3 yen ($1.39) per kg as of 0029 GMT, after climbing as high as 159.2 yen, the highest since Feb.2.
U.S.manufacturing appeared to stabilize in February, with production accelerating and new orders holding steady at higher levels, in another dose of good news for the economy after growth slowed in the fourth quarter.
U.S.February auto sales soared to a 15-year high for the month, carmakers reported on Tuesday, in the latest sign of continued consumer confidence.
Auto sales last month rose about 7 percent, helped by low gasoline prices, available and low-interest credit and higher wages.
Crude rubber inventories at Japanese ports stood at 14,553 tonnes as of Feb. 20, up 4.8 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.
MARKET NEWS
The U.S. dollar was quoted around 113.81 yen JPY= early on Wednesday. The yen suffered a big reversal overnight, hitting its lowest in nearly two weeks at 114.185 yen JPY= , as traders in London and New York took a brighter view on the global economy and dumped the safe-haven Japanese currency.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Japan’s benchmark Nikkei stock average .N225 was up 2.6 percent in Wednesday trade after U.S. stocks .SPX staged their biggest one-day rise in a month the previous day.
Oil markets closed up as much as 2 percent on Tuesday, before giving back most of their gains in post-settlement trade after data suggesting a huge build in U.S.crude stockpiles already at record high levels.
O/R DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
1000 Euro zone Producer prices Jan
1315 U.S. ADP national employment Feb
1445 U.S. ISM-New York index Feb
($1 = 113.7600 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
