TOKYO, Dec 26 (Reuters) – Benchmark TOCOM rubber futures fell to a two-week low on Monday, weighed down by a firmer yen against the U.S.dollar and softer Shanghai futures last Friday, but trade was thin ahead of the new year holiday.
Japanese markets were shut on Friday due to a national holiday.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: was down 4.2 yen, or 1.6 percent, at 262.0 yen per kg as of 0034 GMT, after hitting the lowest since Dec. 13 of 260.4 yen earlier in the session. The contract fell 6.1 percent last week. RUB/T
China’s natural rubber imports rose 8.99 percent in November from a year earlier, official customs data showed on Thursday.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.6 percent from the previous Friday, the exchange said on Friday.
Crude rubber inventories at Japanese ports stood at 5,559 tonnes as of Dec.
10, down 6.9 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
U.S. auto sales will probably decline slightly for December as consumers keep snubbing sedans despite record consumer discounts, industry consultancies J.D.Power and LMC Automotive said on Thursday in a forecast that highlights the pressure on Detroit automakers.
New U.S.single-family home sales rose more than expected in November, reaching their highest level in four months, likely as expectations of higher mortgage rates drew buyers into the market.
MARKET NEWS
The U.S. dollar was down 0.2 percent at 117.30 yen JPY= on Monday, nudged down after U.S.Treasury yields dipped on mixed economic data.
A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. USD/
Japan’s benchmark Nikkei stock average (XC0009692440) was steady on Monday after key stock indexes around the world were little changed on Friday. MKTS/GLOB
U.S.oil prices closed at a 17-month high on Friday in quiet trade ahead of the Christmas and New Year holiday week, even though the gain was small, as the market waits to see how OPEC manages its planned output cuts with Libya expecting to boost production.
DATA/EVENTS (GMT)
No major data is expected on Monday.
Markets in the U.S., UK, Germany, France, Hong Kong,
Singapore and Australia are closed for the holiday-in-lieu of Christmas Day which fell on a Sunday.
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
