TOKYO, Aug 15 (Reuters) – Benchmark TOCOM rubber futures dropped from a 2-week high on Monday as a stronger yen prompted investors to take profits, but trades were thin with many dealers and traders on summer vacation. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was down 1.7 yen, or 1.1 percent, at 156.5 yen ($1.54) per kg as of 0055 GMT, after touching a high of 158.9 yen, its strongest since July 29, in overnight trade last Friday.
U.S.retail sales were unexpectedly flat in July as Americans cut back on discretionary spending, pointing to a moderation in consumption that could temper expectations of a sharp pickup in economic growth in the third quarter.
Vehicle sales in China for July rose at the fastest monthly rate in 3-1/2 years, data from an industry association showed, thanks to a tax cut on small engine vehicles and a comparatively weak growth rate for the same period last year.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.3 percent from the prior Friday, the bourse said on Friday.
MARKET NEWS
The U.S. dollar was quoted around 101.37 yen JPY= early on Monday, after losing 0.6 percent on Friday, when downbeat U.S.data tempered expectations of a near-term interest rate hike by the Federal Reserve.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.2 percent in Monday trade after Wall Street inched lower last Friday. MKTS/GLOB
Oil prices edged up early on Monday and have risen more than 10 percent since the start of the month as speculation intensifies about potential producer action to support prices in an oversupplied market.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1230 U.S. New York Fed manufacturing Aug
1400 U.S. NAHB housing market index Aug
($1 = 101.3900 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
