TOKYO, March 8 (Reuters) – Benchmark TOCOM rubber futures extended gains into a sixth straight session on Tuesday, supported by a recovery in oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: had risen 1.3 yen to 180.8 yen per kg by 0032 GMT, after settling Monday up 4.9 yen, or 2.8 percent.
The contract has gained nearly 28 percent from this year’s low hit in January and February to a 6-1/2 month high of 184.6 yen on Monday as fears over slowing growth in the Chinese economy ease, dealers said.
China’s trade data due later in the day is expected to make for sombre reading, reflecting persistent weakness in demand at home and abroad which is holding back industrial production and keeping a lid on commodity prices.
MARKET NEWS
The U.S. dollar was quoted around 113.09 yen JPY= , compared with around 113.61 yen on Monday afternoon. FRX/
Japan’s benchmark Nikkei stock average .N225 was down 0.8 percent. MKTS/GLOB
Copper and zinc pulled back from their highest levels in more than four months on Monday, weighed down by a firmer dollar.
Global oil markets jumped more than 5 percent on Monday, with Brent hitting a 2016 peak above $40 a barrel, after Ecuador said it was holding a meeting of Latin American crude producers as OPEC sought a higher anchor price for oil. O/R
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
– n/a China Trade data Feb
– 0700 Germany Industrial output Jan
– 1000 Euro zone Revised GDP Q4
– 1100 U.S. NFIB business optimism Feb
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)
