TOKYO, Dec 6 (Reuters) – Benchmark TOCOM rubber futures extended gains on Tuesday to hit a one-week high, as strong Shanghai futures overnight supported market sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: rose 2.7 yen, or 1.1 percent, to 242.4 yen per kg by 0004 GMT, after settling up 10 yen, or 4.4 percent, on Monday.
The contract rose as high as 243.4 yen, near a 1-1/2 year high of 245.6 yen hit on Nov.29.
The most-active rubber contract on the Shanghai futures exchange for May delivery SNRcv1 finished overnight trading, up 2.3 percent.
The rubber market in Asia has been supported by significant falls in the Japanese yen and Chinese yuan against the dollar recently, which makes yen and yuan-denominated commodities cheaper for holders of other currencies.
Ivory Coast exported 416,231 tonnes of natural rubber in the first ten months of the year to Oct.31, up about 18 percent from the same period in the previous year, provisional port data showed on Monday.
A flood of data from China in coming weeks is expected to show the economy continued to grow at a steady pace in November, with inflation quickening and credit expanding at a faster pace despite concerns about rising debt, a Reuters poll showed.
MARKET NEWS
The U.S. dollar was quoted around 113.88 yen JPY= , compared with around 113.50 yen on Monday afternoon. USD/
Japan’s benchmark Nikkei stock average .N225 opened up 1 percent.
A slide in the dollar and buying by computer-driven funds helped to push zinc, copper and other base metals higher on Monday, traders said, though some expected the move to be short lived with further declines likely before the end of the year.
U.S. crude futures strengthened Monday before retreating in post-settlement trade as the market lost confidence OPEC cuts would be sufficient to reduce oversupply given increased U.S.drilling.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0700 Germany Industrial orders Oct
1000 Euro zone Revised GDP Q3
1330 U.S. International trade Oct
1500 U.S. Factory orders Oct
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)
