TOKYO, March 18 (Reuters) – Benchmark TOCOM rubber futures rose to a near 2-week high on Friday, extending gains into a third straight session on a jump in oil prices to 2016 peaks and putting them on track for a weekly gain of over 7 percent.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was up 5.8 yen, or 3.3 percent, at 181.4 yen ($1.63) per kg as of 0035 GMT, after touching its highest since March 7 at 181.5 yen.
For the week, it was headed for a 7.5-percent gain.
Oil producers including Gulf OPEC members support holding talks next month on a deal to freeze output even if Iran declines to participate, OPEC sources said, increasing the likelihood of the first global supply deal in 15 years.
MARKET NEWS
Oil prices hit 2016 highs on Thursday, with U.S.crude surging 5 percent to pierce the $40 barrier, on optimism that major producers will strike an output freeze deal next month amid rising crude exports and gasoline demand in the United States.
The yen stood within reach of a 17-month high against the dollar early on Friday, with the Federal Reserve’s cautious stance towards hiking interest rates continuing to take a toll on the U.S.currency.
The dollar traded at 111.03 yen JPY= after sliding to 110.67 overnight, its lowest since October 2014. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was down 1.5 percent in Friday trade, dented by the stronger yen.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0700 Germany Producer prices Feb
1000 Euro zone Labour costs Q4
1400 U.S. Univ of Michigan sentiment index Mar
($1 = 111.2300 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
