TOKYO, July 11 (Reuters) – Benchmark TOCOM rubber futures rebounded on Monday, recovering from near a 5-month low hit late last week, backed by a jump in Tokyo stocks in the wake of a clear win by the government in upper house elections and a softer yen after solid U.S.data.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery JRUc6 0#2JRU: was up 1.5 yen, or 1.0 percent, at 148.7 yen ($1.48) per kg as of 0043 GMT, after touching 145.9 yen on Friday – the lowest since Feb.12. It fell 5.5 percent last week. RUB/T
Prime Minister Shinzo Abe’s ruling coalition won a landslide victory on Sunday in an election for parliament’s upper house, despite concerns about his economic policies and plans to revise the nation’s post-war pacifist constitution for the first time.
U.S.job growth surged in June as manufacturing employment increased, more evidence the economy has regained speed after a first-quarter lull, but tepid wage growth could see the Federal Reserve remaining cautious about hiking interest rates.
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) was up nearly 3 percent in Monday trade after a landslide victory by the government in upper house elections and as upbeat U.S.jobs data lessened immediate concerns about health of the world’s largest economy.
The U.S. dollar was quoted around 100.78 yen JPY= early on Monday, against the post-Brexit low of 99 yen. The dollar slid against the yen on Friday on the view that the stronger-than-expected U.S.employment payrolls report will not persuade the Fed just yet to raise interest rates again this year.
Crude prices edged down in early Asian trade on Monday to hold near two-month lows on seasonally weak consumption, despite comments from the Saudi Arabian oil minister that the oil market was becoming more balanced. O/R
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1400 U.S. Employment trends Jun
($1 = 100.7700 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
