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Saturday, November 27, 2021

Tokyo rubber futures slide on worries over China appetite

TOKYO, Nov 2 (Reuters) – Benchmark TOCOM rubber futures on Monday slid to near a 6-year low hit the previous week, as disappointing economic surveys from China raised concerns about slowing demand in the world’s top buyer of the commodity.

FUNDAMENTALS

  • The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: had fallen 1.3 yen, or 0.8 percent, to 159.0 yen per kg by 0045 GMT, after booking a fifth consecutive monthly loss. The contract sank to a six-year low of 157.1 yen last week.
  • Activity in China’s manufacturing sector unexpectedly contracted in October for a third straight month, an official survey showed on Sunday, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.
  • Markets have another chance to gauge the health of the

Chinese economy when a private survey of manufacturing activity is published at 0145 GMT.

  • Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.3 percent from the same day the previous week, the bourse said on Friday.
  • U.S.jobs data due this week may hold the key to whether the Federal Reserve will raise interest rates for the first time since 2006 in December, signalling its intention to end an era of almost-free dollars.

MARKET NEWS

  • Japan’s benchmark Nikkei stock average (XC0009692440) dipped 1.5 percent in early Monday trade following lacklustre Chinese data. MKTS/GLOB
  • The U.S. dollar remained on the defensive against the yen on Monday, hovering at around 120.47 yen JPY= , after the Bank of Japan’s decision to hold policy steady last week favoured the Japanese currency. FRX/
  • Oil prices fell in early trading in Asia on Monday as analysts expected weaker demand from China in upcoming months.
  • Copper, zinc and lead dropped to three-week lows on Friday as investors zeroed in on a combination of oversupply and weak demand in major metals consumer China. MET/L

DATA/EVENTS (GMT)

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

0145 China Caixin manufacturing PMI final Oct

0850 France Markit manufacturing PMI Oct

0855 Germany Markit manufacturing PMI Oct

0900 Euro zone Markit manufacturing PMI final Oct

1500 U.S. ISM manufacturing PMI Oct

1500 U.S. Construction spending Sep

(Reporting by Yuka Obayashi; Editing by Joseph Radford)

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