TOKYO, July 13 (Reuters) – Benchmark TOCOM rubber futures climbed to a fresh one-week high on Wednesday on the back of the yen’s drop against the U.S.dollar, while a stronger Tokyo stock market and an overnight jump in oil prices also helped risk appetite.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery JRUc6 0#2JRU: was up 2.6 yen, or 1.7 percent, at 155.3 yen per kg as of 0044 GMT, after earlier hitting its highest since July 6 at 157.7 yen.It climbed for a second day to a one-week high the previous day.
Related Post
An international tribunal’s ruling denying China’s claims in the South China Sea will “intensify conflict and even confrontation”, Beijing’s ambassador to the United States said on Tuesday.
China’s foreign direct investment (FDI) jumped 9.7 percent in June from a year earlier, official data showed on Tuesday, recovering from a 1-percent drop in May and hitting a 10-month high.
MARKET NEWS
The U.S. dollar jumped 1.95 percent to 104.79 yen JPY= , its strongest level since June 24, when the British referendum result roiled global markets, as a rekindled appetite for risk continued to drive sentiment after Japan’s ruling coalition won a weekend election. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) rose nearly 2 percent in Wednesday trade, after the benchmark U.S.S&P 500 stock index set record closing for the second straight day on Tuesday as optimism about the world economy.
Crude futures fell on Wednesday as investors took gains after oil prices surged nearly 5 percent, the biggest daily gain since April, in the previous session, partly on the back of a forecast increase in demand next year. O/R
Zinc touched a 13-month peak and nickel hit the highest since last October on Tuesday as speculators piled in after the selection of a new prime minister for Britain and on hopes of more stimulus.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
China Trade data June
0645 France Consumer prices June
0900 Euro Industrial production May
1230 US Import prices June
No exact timing for China trade data
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
