Tokyo rubber futures edge lower on profit-taking

TOKYO, Oct 17 (Reuters) – Benchmark TOCOM rubber futures edged lower on Monday as investors took profits on gains of more than 5 percent last week, while weaker oil prices also dampened market sentiment.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for March delivery JRUc6 0#2JRU: was down 0.6 yen, or 0.3 percent, at 182.7 yen ($1.78) per kg as of 0030 GMT, after touching the highest since May 9 at 184.5 yen in the overnight session on Friday which is counted as Monday’s trade.

U.S.retail sales rebounded in September amid a surge in motor vehicle purchases and rise in discretionary spending, pointing to solid demand that reinforces expectations of an interest rate increase from the Federal Reserve in December.

China’s producer prices unexpectedly rose in September for the first time in nearly five years thanks to higher commodity prices, welcome news for the government as it struggles to whittle down a growing mountain of corporate debt.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2 percent from last release on Sep 30, the exchange said on Friday.

Oil prices fell slightly on Friday as traders balanced a stronger dollar and another increase in the U.S.oil rig count against expectations that more OPEC talk of output cuts will keep crude above $50 per barrel.

The safe-haven yen fell against the U.S.dollar last Friday after risk sentiment got a boost from Chinese data showing producer prices rose for the first time in nearly five years.

The yen was quoted around 104.11 yen JPY in early Monday. FRX/

Japan’s benchmark Nikkei stock average (XC0009692440) rose on Monday after global stocks rebounded on Friday, buoyed by U.S.and Chinese data.

DATA/EVENTS (GMT)

The following data is expected on Monday: (Time in GMT)

0900 Euro zone Inflation final Sep

1230 U.S. New York Fed manufacturing Oct

1315 U.S. Industrial output Sep

($1 = 102.9000 yen)

(Reporting by Yuka Obayashi; Editing by Joseph Radford)