TOKYO, Jan 29 (Reuters) – Key TOCOM rubber fell on Tuesday as a fall in the yen from a 2-1/2 year high prompted profit-taking, while buying from China, the world’s biggest user, is unlikely at current price levels despite the approaching Lunar New Year holiday next month.
FUNDAMENTALS
* The Tokyo Commodity Exchange’s most-active rubber contract for July delivery <0#2JRU:>, traded at 311 yen per kg, down 2.7 yen or 0.9 percent from the previous close, as of 0030 GMT.
* A weaker yen versus the dollar in theory inflates the yen-denominated TOCOM prices as rubber is traded in dollars in producing countries.
* The TOCOM market reached a nine-month high of 321 yen on Jan. 11.
* Toyota Motor Corp regained the crown as the world’s top selling automaker in 2012, posting record-high sales and beating rivals General Motors and Volkswagen .
* Traders are awaiting the outcome of the Federal Reserve’s monetary policy meeting this week, although most do not expect any change in the U.S. central bank’s dovish stance. The two-day meeting is scheduled to end on Wednesday, when U.S. gross domestic product data for the last quarter is also due.
MARKET NEWS
* Japan’s Nikkei share average fell on Tuesday, backing away from a 32-month high above 11,000 that it touched on Monday, as a firmer yen tempered appetite for exporters and turned the focus to upcoming earnings reports.
* The dollar traded at around 90.50 yen in early trade on Tuesday, hovering below a 2-1/2 year high of 91.25 yen marked on Monday.
* Oil prices rose on Monday, led by a 2 percent gain in U.S. gasoline following news that Hess Corp will close a New Jersey refinery, tightening supplies in the giant Northeast gasoline market.
DATA EVENTS
* The following data is expected on Tuesday:
0700 Germany GFK Consumer sentiment
0745 France Consumer confidence
1245 U.S. ICSC weekly chain store sales
1355 U.S. Redbook weekly retail sales
1400 U.S. CaseShiller
1500 U.S. Consumer confidence
2130 U.S. API weekly crude stocks (Reporting by Risa Maeda)
Source: Reuters
