TOKYO, Aug 10 (Reuters) – Benchmark TOCOM rubber futures edged lower on Wednesday on a stronger yen and weaker oil prices, but trade was light with many on summer vacation.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was down 0.2 yen, or 0.1 percent, at 153.2 yen ($1.51) per kg as of 0047 GMT, after sliding nearly 2 percent the previous day. RUB/T
India’s natural rubber production rose 6.4 percent in June from a year ago to 50,000 tonnes as lower rainfall in the top producing southern state of Kerala allowed farmers to raise tapping, the state-run Rubber Board said in a statement.
MARKET NEWS
The U.S. dollar was 0.53 percent weaker against the Japanese yen at 101.88 yen JPY= as investors evaluated the likelihood that the U.S.Federal Reserve will raise interest rates this year.
A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. FRX/
Oil prices fell 1 percent on Tuesday, extending losses in post-settlement trade after preliminary data showed a surprise U.S.crude stockpile build last week, heightening worries about a global petroleum glut.
Japan’s benchmark Nikkei stock average (XC0009692440) dropped 0.4 percent in Wednesday trade, after Wall Street eked out gains the previous day, with the S&P 500 and Nasdaq ticking up to intraday record highs. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0645 France Industrial output Jun
1400 U.S. JOLTS job openings Jun
($1 = 101.4200 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
