TOKYO, Nov 24 (Reuters) – Benchmark TOCOM rubber futures hit a fresh 17-month high on Thursday, extending gains into a third straight session, on the back of an overnight rise in Shanghai futures and a lower yen against the U.S.dollar.
FUNDAMENTALS
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery JRUc6 0#2JRU: was up 8.4 yen, or 3.7 percent, at 237.9 yen ($2.11) per kg as of 0053 GMT, after touching the highest since June 12, 2015 of 238.3 yen earlier in the session.Tokyo markets were closed on Wednesday for a public holiday.
The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 rose 455 yuan to 17,990 yuan per tonne in an overnight trade, the highest level since July 2014.
U.S. auto sales in November will be up 5 percent from a year earlier, industry consultants J.D.Power and LMC Automotive estimated on Wednesday.
making it possible that 2016 will top last year’s sales record.
Automakers in the United States are ramping up holiday promotions ahead of Black Friday, aiming to clear out bulging inventories of unsold cars and dispel investor doubts about consumer demand.
MARKET NEWS
The U.S. dollar was up 0.1 percent at 112.56 yen JPY= in early Thursday, after rising as high as 112.98 yen the previous day ahead of the Thursday’s Thanksgiving holiday in U.S.markets.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies. USD/
Japanese stocks rose to a near 11-month high on Thursday on a weaker yen and after Wall Street shares closed at record highs overnight, while the dollar’s bull run continued as upbeat economic data took U.S.bond yields to multi-year highs.
Oil prices fell slightly on Wednesday amid investor doubts that OPEC will agree to a production cut large enough to make a significant dent in the global glut of crude as U.S.drilling rises.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0700 Germany Detailed GDP Q3
0745 France Business climate Nov
0900 Germany Ifo business climate Nov
1200 Germany GfK consumer sentiment Dec
($1 = 112.4900 yen)
(Reporting by Yuka Obayashi; Editing by Kenneth Maxwell)
