TOKYO, March 28 (Reuters) – New benchmark TOCOM rubber futures rose more than 2 percent on Monday, helped by a drop in the yen against the U.S. dollar following a series of comments from U.S.Federal Reserve supporting the case for more interest rate hikes.
The remarks, such as those from St.Louis President James Bullard, raised prospects of more rate hikes than the market had anticipated.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
FUNDAMENTALS
- The new Tokyo Commodity Exchange rubber contract for September delivery JRUc6 0#2JRU: was up 3.9 yen, or 2.2 percent, from an opening price of 177.2 yen at 181.1 yen per kg as of 0053 GMT.The TOCOM benchmark lost 2 percent last week.
- The March contract expired on Friday at 167 yen.
- U.S.economic growth slowed in the fourth quarter, but nota as sharply as previously estimated, with fairly strong consumer spending offsetting the drag from efforts by businesses to reduce an inventory overhang.
- Vietnam’s rubber exports in the first quarter rose 20.6 percent from a year ago to an estimated 236,300 tonnes, the government said on Friday.
- Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.1 percent from the prior Friday, the exchange said on Friday.
MARKET NEWS
The U.S. dollar was up 0.2 percent at 113.375 yen JPY= early on Monday, after touching a 12-day high of 134.400. The dollar had gained 1.4 percent versus its safe-haven Japanese peer last week, pulling away from a 17-month low of 110.67 plumbed mid-month. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.7 percent in Monday trade, after fairly strong consumer spending led to an upward revision in U.S.economic growth in the fourth quarter, helping to underpin investor sentiment.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1230 US PCE Price Index Feb
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
