Tokyo rubber futures rise on weaker yen; U.S.-Sino friction weighs

0
68

TOKYO, May 25 (Reuters) –

* The Tokyo Exchange (TOCOM) contract for October delivery rose on Monday, helped by a softer yen against the U.S. dollar, but weaker oil markets and mounting U.S.-China tensions limited gains.

* The benchmark was up 1.5 yen, or 1.0%, at 153.0 yen ($1.42) per kg, as of 0041 GMT.

* The U.S. dollar was quoted around 107.75 yen on Monday, compared with 107.46 yen in late Asia trade on Friday. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

Article continues below Advertisement...

* Stronger equities in Tokyo also lent support to investors’ sentiment. ’s benchmark Nikkei stock average gained 1.5% on hopes that the government will decide to lift state of emergency measures in remaining places, including the Tokyo metropolitan area.

* However, a drop in oil prices capped gains. Oil prices slid on Monday amid growing U.S.-China tensions and doubts about how quickly fuel would recover from the coronavirus .

* China’s move to impose a new security on Hong Kong further strained U.S.-China relations and clouded economic recovery prospects.

* The front-month rubber contract on Singapore’s SICOM exchange for June delivery was at 109.2 U.S. cents per kg on Monday, down 1.9% from the previous session.

* The most-active rubber contract on the Shanghai exchange for delivery fell 2.6% on Friday to finish at 10,190 yuan ($1,430) per tonne.

* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange unchanged, the exchange said on Friday.

($1 = 7.1269 Chinese yuan)

LEAVE A REPLY

Please enter your comment!
Please enter your name here