TOKYO, April 6 (Reuters) – Benchmark TOCOM rubber futures rose to a 1-month high on Wednesday, extending gains into a fourth straight session on a rebound in oil prices and views that the lingering impact of El Nino may be affecting rubber output in Southeast Asia.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for September delivery JRUc6 0#2JRU: was up 1.8 yen, or 1.0 percent, at 182.6 yen ($1.65) per kg as of 0050 GMT, after climbing 2.4 percent over the past three sessions. It earlier hit its highest since March 7 at 183.4 yen. RUB/T
Japan’s Prime Minister Shinzo Abe said countries should avoid seeking to weaken their currencies with “arbitrary intervention”, while calling for stable exchange rates, the Wall Street Journal said.
China’s auto market appears poised for a rebound in March after a slow Lunar New Year season, with Toyota Motor Corp (TOYOF) posting strong monthly sales and a dealer survey indicating rising demand.
China’s consumer prices are likely to rise modestly this year, while property prices in some major cities could climb, the state planner said in a report published in the China Securities Journal on Tuesday.
The current El Nino weather pattern is easing, with weather models indicating that La Nina conditions could emerge in the coming months for the first time in four years, climate experts say.
MARKET NEWS
Oil prices rose on Tuesday after Kuwait insisted major producers will agree to freeze output later this month even as key player Iran continued to balk at the plan.
The U.S. dollar hovered near a 17-month low against the yen at around 110.43 yen JPY= on Wednesday after taking a fresh knock overnight on comments by Japan’s prime minister which suggested the authorities were cautious towards arresting the yen’s appreciation. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was flat in Wednesday trade, after it tumbled to a seven-week low and Wall Street fell sharply the previous day. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0145 China Caixin services PMI Mar
0600 Germany Industrial output Feb
1800 Minutes of U.S. Federal Reserve’s March 15-16 meeting
($1 = 110.4700 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
