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TOKYO, Nov 21 (Reuters) – Key TOCOM rubber futures inched up on Wednesday, marking a third day of gains as the yen hit a seven-month low against the dollar, although gains were limited by concerns over slowing global demand.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for April delivery was traded 0.3 yen, or 0.1 percent, higher at 256.3 yen as of 0051 GMT. The benchmark contract hit a near three-week high of 257.7 yen on Tuesday, helped by a rebound in Japanese equities and a weaker yen.
* Concerns about slowing demand in China, the world’s biggest rubber consumer, persists as weak demand from downstream industries and high stocks have pressured domestic rubber prices.
* Indian natural rubber futures are likely to remain steady this week, tracking some recovery in the world market and as farmers hold back produce on hopes of better prices. However, a pick-up in tapping in the top producing state of Kerala and imports are expected to weigh on prices.
MARKET NEWS
* Wall Street halted its two-day rally on Tuesday, after Federal Reserve Chairman Ben Bernanke said the central bank lacks tools to cushion the U.S. economy from the impact of the “fiscal cliff.”
* The yen slumped to seven-month lows against the dollar On Wednesday and fell nearly as far against the euro on views Japan’s central bank will be pushed into implementing more radical monetary expansion policies.
* Oil fell from a one-month high on Tuesday amid signs of a ceasefire that would end a week of rocket attacks and air strikes between Palestinians and Israelis.
* The Nikkei share average rose to a two-month high in early trade on Wednesday, led by exporters after the yen hit a seven-month low versus the dollar on expectations the Bank of Japan will be pushed to take aggressive stimulus action under a likely new government.
DATA EVENTS
* The following data is expected on Wednesday: (Time in GMT)
– 1330 U.S. Weekly jobless claims
– 1358 U.S. Markit Manufacturing Flash PMI Nov
– 1455 U.S. TR/U Mich final sentiment index Nov
– 1500 U.S. Leading indicators Oct
– 1630 U.S. EIA weekly petroleum status report
(Reporting by Osamu Tsukimori; Editing by Ed Davies)
Source: Reuters
