TOKYO, March 5 (Reuters) – Key TOCOM rubber futures rose 0.5 percent on Tuesday after hitting its lowest level in more than two-and-a-half months a day earlier, rising on a weaker yen and China’s move to set its 2013 GDP growth target at 7.5 percent.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for August delivery <0#2JRU:> was changing hands 1.7 yen higher at 285.6 yen as of 0027 GMT. The benchmark contract fell as low as 281.0 yen on Monday, the lowest since 275.7 hit on Dec. 17.
* The market was suppported after the U.S. dollar drifted to a one-week high of 93.73 yen, continuing to recover slowly from last week’s slide to 90.85.
A weaker yen makes dollar-based commodities more expensive and can encourage players to take speculative buying positions in TOCOM rubber.
* China aims to grow its economy by 7.5 percent in 2013 and keep consumer inflation running around 3.5 percent for the year, outgoing Premier Wen Jiabao said on Tuesday as the country began its annual parliament meetings.
The world’s second-largest economy grew 7.8 percent in 2012, the slowest pace in 13 years but still slightly above a 7.5 percent annual growth target.
TOCOM Rubber Futures Prices on March 5, 2013 (yen / kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Mar 2013 |
269.5 |
266.5 |
272.5 |
266.5 |
272.5 |
+3.0 |
20 |
|
Apr 2013 |
271.5 |
272.0 |
275.9 |
271.0 |
275.9 |
+4.4 |
23 |
|
May 2013 |
276.0 |
275.5 |
279.2 |
274.4 |
279.2 |
+3.2 |
87 |
|
Jun 2013 |
278.2 |
278.4 |
282.7 |
277.5 |
281.9 |
+3.7 |
369 |
|
Jul 2013 |
281.3 |
280.3 |
285.6 |
280.2 |
285.2 |
+3.9 |
1,505 |
|
Aug 2013 |
283.9 |
283.5 |
288.5 |
283.0 |
287.8 |
+3.9 |
3,684 |
|
Total |
|
5,688 |
|||||
MARKET NEWS
* U.S. stocks closed higher on Monday as investors staged a late-day rebound, extending a recent trend of buying on dips and pushing major indexes near all-time highs despite concerns about growth and China’s housing market.
* The euro languished near a three-month low on Tuesday as investors kept a wary eye on political developments in Italy, while commodity currencies proved resilient with the Australian dollar bouncing off an eight-month trough.
* U.S. oil futures fell to their lowest level in 2013 on Monday, declining for a third consecutive session in reaction to slowing growth in China and indicators that oil markets are amply supplied.
* Japan’s Nikkei average is expected to open higher on Tuesday after U.S. stocks staged a late rally, while the confirmation hearing of Bank of Japan nominees should continue to boost expectations of further easing by the central bank.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
– 0330 Australia RBA cash rate
– 0843 Italy Markit Adaci Services PMI
– 0848 France Markit Services PMI
– 0853 Germany Markit Services PMI
– 0858 Euro zone Markit Services PMI
– 1000 Euro zone Retail sales
– 1245 U.S. ICSC weekly chain store sales
– 1500 U.S. ISM Non-manufacturing PMI
– 1500 U.S. IBD/TIPP Consumer confidence
– 2130 U.S. API weekly crude stocks
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)
Source: Reuters
