TOKYO, July 28 (Reuters) – Benchmark TOCOM rubber futures inched down on Friday, on track for a small weekly decline as investors adjusted positions ahead of the weekend, while a strong yen weighed on market sentiment.
Rubber was still headed for a monthly gain of around 6 pecent, its first monthly rise since January.
FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for January delivery was down 1.1 yen, or 0.5 percent, at 213.4 yen ($1.92) per kg as of 0039 GMT, after rising 0.3 yen the previous day.
* It was on track for a 0.5 percent weekly fall.
* Crude rubber inventories at Japanese ports stood at 7,592 tonnes as of July. 20, up 12.9 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Friday.
* Nissan Motor Co said higher incentives to expand sales in the slowing U.S. auto market were increasingly dragging down its bottom line, after earlier reporting a slump in profit to below consensus estimates for the first quarter.
* U.S. durable goods orders rose more than expected last month and a fifth straight monthly increase in shipments suggested that business spending on equipment would support economic growth in the second quarter.
MARKET NEWS
* Oil prices rose to an eight-week high on Thursday, as a rally in U.S. gasoline futures spurred further gains this week that came after key OPEC members pledged to reduce exports and the U.S. government reported a sharp decline in crude inventories.
* The U.S. dollar steadied around 111.21 yen on Friday, a tad above Monday’s low of 110.625, its lowest in more than five weeks. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
* Japan’s benchmark Nikkei stock average edged lower on Friday, pressured by a firm yen.
DATA/EVENTS (GMT)
* The following data is expected on Friday: (Time in GMT)
0130 Australia PPI Q2
0530 France GDP (INSEE) Q2
0645 France Consumer spending (INSEE) June
0900 Euro Zone Economic sentiment July
1200 Germany CPI July
1230 U.S. GDP Q2
1230 U.S. Employment cost index Q2
1400 U.S. U Mich consumer sentiment July ($1 = 111.0200 yen) (Reporting by Yuka Obayashi; Editing by Richard Pullin)
