TOKYO, Nov 15 (Reuters) – Key TOCOM rubber futures inched higher on Thursday, rising for a second day, supported by a fall in the yen after Japan’s prime minister called for a snap election, but gains were limited by concerns over fragile global demand.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract, for April delivery <0#2JRU:>, was trading 0.8 yen higher at 246.7 yen per kg by 0030 GMT.
* The benchmark fell to a two-month low of 241.8 yen on Monday and again during Tuesday’s evening session, which is technically part of Wednesday’s day trade.
* China’s ruling Communist Party unveils a new leadership line-up on Thursday to steer the world’s second-largest economy for the next five years, with Vice President Xi Jinping taking over from outgoing President Hu Jintao as party chief.
* Japanese Prime Minister Yoshihiko Noda is set to dissolve parliament’s lower house on Friday for a snap election next month, which is likely to cost him his job and return to power a party that has governed Japan for most of the past 50 years.
MARKET NEWS
* Japan’s Nikkei stock average rose in early trade on Thursday as a weaker yen boosted exporters, offsetting concerns about the prospect of protracted negotiations to resolve fiscal gridlock in the United States.
* The yen fell the most against the dollar and euro in two months on Wednesday.
* Brent crude oil prices climbed more than 1.0 percent toward $110 a barrel on Wednesday, snapping a two-day slide after Israel launched an offensive against Palestinian militants in Gaza, reinforcing fears about tensions in the Middle East disrupting supplies.
* Toyota Motor Corp said on Wednesday it would recall 2.77 million vehicles worldwide, including some of its popular Prius hybrid cars, for steering and water pump problems in the carmaker’s second multimillion-vehicle recall in a little over a month.
DATA EVENTS
* The following data is expected on Thursday: (Time in GMT)
0630 France Q3 GDP
0700 Germany Q3 GDP
0900 Italy Q3 GDP
1000 Euro zone Q3 GDP
1000 Euro zone Final inflation Oct
1330 U.S. Inflation Oct
1330 U.S. New York Fed manufacturing Nov
1330 U.S. Weekly jobless claims
1500 U.S. Philly Fed business index Nov
(Reporting by Risa Maeda; Editing by Joseph Radford)
Source: Reuters
