TOKYO, Aug 1 (Reuters) – Benchmark TOCOM rubber futures rebounded on Monday as investors looked for bargains after a nearly three percent plunge last Friday, but gains are likely to be capped by nerves over the higher yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 1.4 yen, or 0.9 percent, at 154.9 yen ($1.51) per kg as of 0036 GMT, after losing 2.9 percent on Friday and marking a third monthly decline. RUB/T
U.S.economic growth unexpectedly remained tepid in the second quarter as inventories fell for the first time in nearly five years and business investment weakened further, offsetting robust consumer spending.
The Bank of Japan expanded stimulus on Friday by doubling purchases of exchange-traded funds (ETF), yielding to pressure from the government and financial markets for bolder action, but disappointing investors who had set their hearts on more audacious measures.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.5 percent from the prior Friday, the exchange said on Friday.
MARKET NEWS
The U.S. dollar added 0.3 percent against the yen to 102.36 yen JPY= in early Monday, after tanking to below 102 yen in Friday’s session following weak U.S.data and the BOJ’s policy decision.
Japan’s benchmark Nikkei stock average (XC0009692440) slid 0.8 percent in Monday trade, hurt by a jump in the safe-haven yen against the U.S.dollar on Friday.
Oil prices steadied on Friday after touching three-month lows during a week-long selloff fuelled by a persistent global supply glut, bringing the monthly decline to nearly 15 percent, the biggest monthly loss in a year for U.S.crude.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0100 China Official manufacturing PMI Jul
0100 China Official services PMI Jul
0145 China Caixin manufacturing PMI final Jul
0755 Germany Markit/BME manufacturing PMI Jul
0800 Euro zone Markit manufacturing PMI final Jul
1400 U.S. Construction spending Jun
1400 U.S. ISM manufacturing PMI Jul
($1 = 102.4600 yen)
(Reporting by Yuka Obayashi; Editing by Michael Perry)
