TOKYO, May 24 (Reuters) – Benchmark TOCOM rubber futures slipped on Tuesday for a second day to hold near a 3-month low, hit by softer oil prices and a firm yen, as well as worries about slowing demand in top buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: was down 0.4 yen, or 0.3 percent, at 155.4 yen ($1.42) per kg as of 0040 GMT, after falling 4.5 percent and hitting a low the previous day of 154.3 yen, the weakest since Feb.29.
Asian industrial commodities, including steel, iron ore and rubber, slumped on Monday as concerns about the economic health of the region’s two biggest export economies, China and Japan, raised questions about their demand for raw materials.
MARKET NEWS
Oil prices eased again on Monday after Iran vowed to ramp up output and as the number of rigs drilling for crude in the United States held steady after declining for eight straight weeks.
The yen held on to gains on Tuesday, shored up by investors’ risk aversion and receding expectations that Japan will weaken the currency after a fresh warning by the United States last week against intervention. The dollar was traded at 109.260 yen JPY= in early Tuesday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) slumped 0.5 percent in Tuesday trade after Wall Street closed with modest losses overnight. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0600 Germany Detailed GDP Q1
0645 France Business climate May
0900 Germany ZEW economic sentiment May
1400 U.S. New home sales Apr
1400 U.S. Richmond Fed composite index May
($1 = 109.3000 yen)
(Reporting by Yuka Obayashi; Editing by Ed Davies)
