TOKYO, May 11 (Reuters) – Benchmark TOCOM rubber futures rose for a second day on Wednesday, rebounding from a one-month low hit the previous day, as stronger oil and Tokyo equities, coupled with a weaker yen, prompted investors to cover short positions.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: was 1.3 yen, or 0.7 percent, higher at 183.0 yen ($1.68) per kg as of 0034 GMT, after snapping a five-day losing session the previous day. The contract hit a low of 178.0 the previous day, the weakest since April 8, before bouncing back to end higher.
MARKET NEWS
Brent jumped 4 percent on Tuesday, while U.S. crude settled up more than 2 percent, after a late burst of buying driven in part by expectations that record U.S.crude inventories would not swell by as much as they have in recent weeks.
The yen stayed on the defensive early on Wednesday, standing at around 109.12 yen JPY= against the U.S.dollar, following two sessions of steep declines after Japanese officials stepped up their warning about intervening to weaken the currency.
Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.3 percent in Wednesday trade, after climbing more than 2 percent to 1-1/2-week highs the previous day following a warning by Japan’s finance minister that Tokyo will intervene if the yen’s “one-sided” rise persists.
($1 = 109.0600 yen)
(Reporting by Yuka Obayashi; Editing by Ed Davies)
