TOKYO, May 19 (Reuters) – Benchmark TOCOM rubber futures extended declines to a 2-1/2 month low on Thursday as commodity markets came under pressure from weaker oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: had fallen 1.6 yen to 166.9 yen per kg by 0033 GMT, after settling down 3.7 yen on Wednesday.
The benchmark contract touched 165.3 yen in overnight trade, the lowest since March 4. The decline was limited, however, by a weaker yen against the dollar amid expectations of further U.S.interest rate hikes.
MARKET NEWS
Oil prices retreated from 2016 highs and snapped a two-day rally on Wednesday, hurt by a surge in the dollar after the U.S.Federal Reserve signalled it could raise interest rates next month.
The U.S. dollar was quoted around 110.20 yen JPY= , compared with 109.52 yen on Wednesday afternoon. FRX/
Japan’s benchmark Nikkei stock average .N225 was up 1.1 percent. MKTS/GLOB
Copper slid to its lowest in three months on Wednesday, pressured by a strong dollar.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
1230 US weekly jobless claims
1230 US Philly Fed Business Index for May
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)
