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Tuesday, January 25, 2022

Tokyo rubber futures edge higher on bargain hunting, weaker oil caps gains

TOKYO, June 14 (Reuters) – Benchmark TOCOM rubber futures edged higher on Tuesday, as investors looked for bargains after a seven-week market slump, but weaker oil prices and the yen’s recent strength against the U.S.dollar capped gains.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was up 0.2 yen, or 0.1 percent, at 153.4 yen ($1.44) per kg as of 0043 GMT, after snapping a four-session losing streak the previous day.It slipped for the seventh week in a row last week.

China’s monthly vehicle sales grew at the fastest rate so far this year in May, the country’s automakers association said on Monday, as a tax cut on small-engine cars and weak year-on-year comparisons helped push up the growth rate.

Growth in China’s fixed-asset investment slipped below 10 percent for the first time since 2000 in January-May as a boost from record credit growth seemed to be quickly fading, putting expectations of further stimulus back on the table.

MARKET NEWS

The U.S. dollar was quoted around 106.37 yen JPY= early on Tuesday.The safe-haven yen firmed broadly the previous day, hitting a 3-year peak against the euro and sterling and a 6-week high versus the dollar on concerns Britain could vote to leave the European Union in a referendum two weeks from now.

A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

Oil prices edged lower on Monday, pressured by a strong U.S.dollar and gloomy economic prospects in Europe and Asia, but supported by ongoing supply outages in Nigeria.

Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.4 percent in Tuesday trade.It touched a two-month low earlier, tracking overnight losses on Wall Street as Brexit fears continued to sap risk appetite globally.

DATA/EVENTS (GMT)

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

0900 Euro zone Employment Q1

0900 Euro zone Industrial production Apr

1000 U.S. NFIB business optimism May

1230 U.S. Retail sales May

1230 U.S. Import prices May 1

230 U.S. Export prices May

1400 U.S. Business inventories Apr Federal Open Market Committee starts two-day policy meeting

($1 = 106.2600 yen)

(Reporting by Yuka Obayashi; Editing by Richard Pullin)

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