TOKYO, Jan 11 (Reuters) – Key TOCOM rubber futures rose 2.1 percent to hit a nine-month high early on Friday, as shares gained and the yen to slid to a 2-1/2 year low after comments from Japan’s prime minister renewed expectations for aggressive monetary easing.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for June delivery <0#2JRU:> was up 1.8 percent, or 5.5 yen, at 318.8 yen per kg as of 0035 GMT. The benchmark contract earlier rose as high as 320 yen, up 6.7 yen, its highest since April.
* Japanese Prime Minister Shinzo Abe said in an interview with the Nikkei newspaper published on Friday that the Bank of Japan should consider maximising employment as a policy goal on top of its current price stability mandate, boosting expectations of further monetary easing in Japan.
* Yen selling also gained momentum after data showed on Friday that Japan logged a current account deficit in November for the first time in 10 months, as exports fell due to weak global demand and energy imports increased.
* Oil and other markets also got a boost from Chinese trade data that showed a strong export growth rebound in December, raising expectations of revived growth in the world’s No. 2 economy that could drive more fuel demand.
MARKET NEWS
* The dollar hit a 2-1/2 year high versus the yen at 89.35 yen on Friday, while Japan’s Nikkei share average rose 1.5 percent to a 23-month high.
* U.S. crude futures rose on Thursday, lifted by news that Saudi Arabia had cut oil production and strong Chinese export data.
DATA EVENTS
* The following data is expected on Friday:
0130 – China PPI year on year for Dec
0130 – China CPI year on year for Dec
0500 – Japan Economy Watchers Survey For December
0800 – Spain Industrial Output For November
0930 – UK Industrial Output For November
1330 – U.S. International Trade For November
1330 – U.S. Import/Export Prices For December
Reuters
