TOKYO, Aug 22 (Reuters) – Benchmark TOCOM rubber futures inched higher on Monday as the yen extended modest losses against the U.S.dollar, but trades were thin with some traders and investors on summer holiday.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 0.6 yen, or 0.4 percent, at 157.6 yen ($1.57) per kg by 0057 GMT, after ending last week with a 0.8 percent fall. RUB/T
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.8 percent from the prior Friday, the exchange said on Friday.
Japanese companies overwhelmingly say the government’s latest stimulus will do little to boost the economy and the Bank of Japan should not ease further, a Reuters poll showed, a setback for policymakers’ efforts to overcome deflation and stagnation.
MARKET NEWS
The U.S. dollar was up 0.4 percent against its Japanese counterpart at 100.59 yen JPY= early on Monday after it rebounded in recent days as U.S. Federal Reserve policymakers took an upbeat tone on the economy and expressed support for a near-term U.S.interest rate hike.
Oil prices fell on Monday as analysts doubted upcoming producer talks would be able to rein in oversupply, saying that Brent would likely fall back below $50 a barrel as August’s over 20-percent crude rally looks overblown. O/R
Japan’s benchmark Nikkei stock average (XC0009692440) was steady in Monday trade, after Wall Street logged modest losses on Friday, ending nearly flat for the week. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1230 U.S. National activity index Jul
($1 = 100.6300 yen)
(Reporting by Yuka Obayashi; Editing by Michael Perry)
