TOKYO, April 22 (Reuters) – Benchmark TOCOM rubber futures slid on Friday on weaker oil prices, retreating from an 8-1/2 month high, but were still on track for a weekly gain of over four percent on expectations of improving demand growth in top buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for September delivery JRUc6 0#2JRU: was down 3.9 yen, or 1.9 percent, at 198.3 yen ($1.81) per kg as of 0047 GMT, after hitting 203.2 yen, the highest since August 3, 2015, the previous day. RUB/T
Higher than expected Chinese industrial production and investment data in March, a surge in property sales in the first quarter, rising exports and above-consensus loan growth have all contributed to optimism in commodity markets.
Japan looks increasingly likely to fire both fiscal and monetary barrels in the coming weeks to help recovery and arrest unwelcome gains in the yen, with direct currency intervention off the table after a cool reception from its U.S.ally.
India’s natural rubber imports in fiscal year 2015/16 rose 2.8 percent from a year earlier to 454,303 tonnes, due to a decline in domestic production, the Rubber Board said on Thursday.
Demand for big trucks in North America and an improved performance in Europe propelled General Motors Co’s (GM) quarterly results well past investors’ expectations, and company executives on Thursday affirmed their bullish outlook for the year.
SAIC Motor (CNE000000TY6) , China’s top automaker, reported on Thursday a 6.5 percent year-on-year rise in net profit for 2015, with sales roughly tracking the overall local market.
MARKET NEWS
Oil prices fell 3 percent on Thursday, pausing after a two-day rally, after producers from Russia to Saudi Arabia and Iran to Libya hinted at more output amid growing U.S.crude stockpiles.
The U.S. dollar was flat against the yen at around 109.44 yen JPY= early on Friday, but was on track for a weekly gain of 0.6 percent and well off this week’s of 107.75 yen plumbed on Monday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.6 percent in Friday trade, after U.S.stocks ended lower, snapping a three-day winning streak on mixed earnings.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0700 France Markit manufacturing flash PMI Apr
0730 Germany Markit manufacturing flash PMI Apr
0800 Euro zone Markit manufacturing flash PMI Apr
1345 U.S. Markit manufacturing flash PMI Apr
($1 = 109.3300 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
