TOKYO, Sept 21 (Reuters) – Benchmark TOCOM rubber futures climbed to a fresh 4-month high on Wednesday, extending the previous day’s jump of about 5 percent, as an overnight gain in Shanghai futures underpinned gains.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for February delivery JRUc6 0#2JRU: was up 2.0 yen, or 1.2 percent, at 167.1 yen per kg as of 0057 GMT, after touching a high of 169.4 yen, the strongest since May 18.
The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 rose 115 yuan to 13,250 yuan per tonne in overnight trade.
The Bank of Japan is expected on Wednesday to make negative interest rates the centrepiece of a new policy framework – widely seen as a desperate attempt to show it still has the means to fight chronic stagnation.
MARKET NEWS
The dollar and the yen fluttered in narrow ranges on Wednesday, penned in by uncertainty about the outcome of Bank of Japan and Federal Reserve policy meetings later in the session.
The U.S. dollar was quoted around 101.71 yen JPY= in early Asia trade. USD/
Japan’s benchmark Nikkei stock average (XC0009692440) was down slightly ahead of the policy meetings of the U.S.and Japan central banks.
U.S. crude oil settled up on Tuesday on speculation of demand from the planned restart of the country’s main gasoline pipeline, before being joined by Brent in a post-settlement rally on data showing a surprise U.S.inventory drawdown.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
U.S. Federal Open Market Committee ends two-day policy meeting The Bank of Japan finishes two-day policy meeting
(Reporting by Yuka Obayashi; Editing by Ed Davies)
