TOKYO, May 18 (Reuters) – Benchmark TOCOM rubber futures extended gains on Wednesday on the back of firm global oil prices, but resurfacing worries over demand growth in top consumer China limited their advance.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: had risen 0.8 yen to 173 yen per kg by 0033 GMT, after settling up 0.2 yen on Tuesday.
Japan’s economy expanded at the fastest pace in a year in the first quarter on robust private consumption and exports, complicating Prime Minister Shinzo Abe’s decision on whether to delay a planned sales tax hike next year.
Concern over China’s economic outlook hovered, with data showing factory output increased more slowly than expected in April and fixed-asset investment growth eased to 10.5 percent year-on-year in the four months to the end of April.
MARKET NEWS
The U.S. dollar was quoted around 108.85 yen JPY= , compared with about 109.47 yen on Tuesday evening. FRX/
Japan’s benchmark Nikkei stock average .N225 was down 0.4 percent.
Copper steadied on Tuesday, supported by the softer dollar and firm oil prices.
Oil prices rose for a third straight day on Wednesday, with U.S. futures hitting seven-month highs, on expectations of a drawdown in U.S.crude stockpiles and a new wildfire threat on Canadian oil supplies.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
– 0900 Euro zone Inflation, Final April
– 1100 U.S. MBA Mortgage application weekly
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)
