TOKYO, May 25 (Reuters) – Benchmark TOCOM rubber futures climbed on Wednesday, boosted by a jump in oil prices, a weaker yen and a flurry of short-covering after a sharp drop in the past month.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: was up 3.0 yen, or 1.9 percent, at 159.3 yen ($1.45) per kg as of 0043 GMT, after ending slightly higher the previous day. RUB/T
The TOCOM contract for May delivery, which is due to expire on Wednesday, has surged 10 yen per kg, or 6.7 percent, to 160.1 yen per kg by 0043 GMT.
Surprisingly strong data on U.S.new home sales in April supported the view the economy may be strong enough for the Fed to raise interest rates as early as June.
MARKET NEWS
Oil rose about 1 percent on Tuesday on a boost from Wall Street and expectations of a drawdown in U.S.crude inventories, then prices jumped another 1 percent after settlement to nearly $50 a barrel after an industry group suggested the draw was larger than expected.
The dollar gained on the safe-haven yen as investor risk aversion ebbed on the back of a bounce in European and U.S.equities.
The U.S. currency was quoted around 110.06 yen JPY= early on Wednesday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.5 percent in Wednesday trade after Wall Street surged more than 1 percent the previous day.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0600 Germany GfK consumer sentiment Jun
0800 Germany Ifo business climate May
1300 U.S. Monthly home price index Mar
($1 = 110.1200 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
