TOKYO, July 25 (Reuters) – Benchmark TOCOM rubber futures tumbled to a nearly one-week low on Monday, following an overnight dive in Shanghai futures last Friday and as concerns about global oversupply hurt oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery JRUc6 0#2JRU: was down 3.7 yen, or 2.3 percent, at 159.1 yen per kg by 0051 GMT, after hitting a low of 158.0 yen, the lowest since July 19. It rose 2.3 percent last week.
The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 plunged 415 yuan, or 3.6 percent, to 11,130 yuan per tonne in an overnight trade last Friday.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.3 percent from the prior Friday, the exchange said on Friday. Japan’s exports fell less than expected in June in a tentative sign that overseas demand could be recovering from persistent weakness that set in last year.
MARKET NEWS
Crude prices inched down on Monday in Asia, staying not far from two-month lows hit in the previous session, amid worries over a global oil glut.
The U.S. dollar was up 0.1 percent at 106.42 yen JPY= against the safe-haven yen early on Monday, having recovered from a dip below the 106 threshold after Wall Street shares resumed their advance.
Japan’s benchmark Nikkei stock average (XC0009692440) edged higher in Monday trade after U.S.stock prices marked four straight weeks of gains.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0800 Germany Ifo’s business climate index July
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
