21.2 C
New York
Wednesday, August 17, 2022

Tokyo futures snap 4-session losing streak on higher oil, softer yen

TOKYO, May 9 (Reuters) – Benchmark TOCOM rubber futures rose on Monday, snapping a four-session losing streak, as higher oil prices and a softer yen prompted short-covering, though gains may be capped by worries over China’s economy.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: was up 2.5 yen, or 1.4 percent, at 186.0 yen per kg at 0042 GMT, after sliding 5.8 percent last week.Japanese markets were closed on May 3-5 for the “Golden Week” public holiday.

China’s exports and imports fell more than expected in April, underlining weak demand at home and abroad and cooling hopes of a recovery in the world’s second-largest economy.

The U.S.economy added the fewest number of jobs in seven months in April and Americans dropped out of the labour force, signs of weakness that left some economists anticipating only one interest rate hike from the Federal Reserve this year.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.6 percent from the prior Friday, the bourse said on Friday.

Ford Motor Co’s (F) monthly vehicle sales in China recorded the largest decline in a year while General Motors’ (GM) sales growth returned to positive territory, clouding the outlook for the world’s biggest auto market amid an economic slowdown.

Toyota (TOYOF) , which on Friday posted a 9.2-percent rise in China April sales, is on course to meet its full-year sales target for the world’s largest auto market, driven by lower retail inventories and a tax cut on small-engine cars, company officials said.

Detroit automakers reported another month of strong demand from U.S.consumers for trucks and sport utility vehicles on Tuesday, but their shares dropped as analysts focused on signs the world’s second-largest auto market has little room to grow.

MARKET NEWS

Oil prices rose about 2 percent in early Asian trading on Monday as supply outages persisted over the weekend from Canada’s wildfires that have shut half the country’s vast oil sands capacity. O/R

The U.S. dollar was quoted around 107.57 yen JPY= early on Monday, against around 106.95 yen on Friday.A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

Japan’s benchmark Nikkei stock average (XC0009692440) was up about one percent in Monday trade, helped by a yen’s drop. MKTS/GLOB

DATA/EVENTS (GMT)

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

0600 Germany Industrial orders Mar

0830 Euro zone Sentix index May

1400 U.S. Employment trends Apr

(Reporting by Yuka Obayashi)

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,289FansLike
12,893FollowersFollow
748FollowersFollow
- Advertisement -

Latest Articles

Popular Articles