TOKYO, Dec 12 (Reuters) – Benchmark TOCOM rubber futures jumped to their highest in nearly three years on Monday, propelled by a surge in Shanghai futures in overnight trade and robust oil prices after OPEC and non-OPEC producers reached their first deal since 2001 to curtail crude output.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was up 10.6 yen, or 4.3 percent, at 256.0 yen ($2.22) per kg at 0039 GMT. It earlier hit its highest since January 2014 at 256.4 yen. It gained 6.8 percent last week. RUB/T
OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries.
The most-active rubber contract on the Shanghai Futures Exchange, for May delivery SNRcv1 , surged 530 yuan to 19,195 yuan ($2,780.19) per tonne in overnight trade last Friday.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.7 percent from the previous Friday, the exchange said on Friday.
U.S. auto sales will fall to about 17.2 million new vehicles next year from an expected 17.4 million in 2016, to be followed by further softening in 2018, industry consultant and publication WardsAuto said on Thursday.
MARKET NEWS
Oil prices shot up over 4 percent to their highest level since 2015 early on Monday after OPEC and other producers over the weekend reached their first deal since 2001 to jointly reduce output in order to rein in oversupply and prop up the market.
The U.S. dollar edged up 0.1 percent to 115.43 yen JPY= after earlier touching 115.55 yen, its loftiest peak since February. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) rose 1.3 percent on Monday, after major U.S.stock indexes powered to another day of fresh record highs on Friday, with the S&P 500 ending the week up 3 percent.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
1900 U.S. Federal budget Nov
($1 = 6.9042 Chinese yuan renminbi)
($1 = 115.5100 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
