Benchmark TOCOM rubber futures rebounded early on Friday from a three-week low hit the previous day, but the contract was still on track for a loss in February after economic worries about top buyer China and top producer Thailand hit sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery was up 2 yen at 220.2 yen per kg by 0041 GMT, putting the contact on course for a monthly decline of 3.1 percent. The contract ended 1.7 yen lower on Thursday (Feb 27).
Just four months after unveiling the boldest set of economic and social reforms in nearly three decades, China’s top leaders meet next week to discuss implementing the changes – but chances are they will play it safe.
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Unusually harsh winter weather appears to be behind recent signs of weakness in the U.S. economy, Federal Reserve Chair Janet Yellen said on Thursday (Feb 27), suggesting the central bank was poised to press forward in ratcheting back its stimulus.
Thailand’s anti-corruption agency weighed charges of negligence against Prime Minister Yingluck Shinawatra on Thursday (Feb 27) as the leader of protests aimed at forcing her from power suggested a televised debate after weeks of refusing to talk.
MARKET NEWS
The U.S. dollar was quoted around 102.06 yen early on Friday (Feb 28), as the Japanese currency’s traditional safe-haven appeal in the face of the Ukraine developments helped lift the greenback from a one-week low of 101.73 yen on Thursday (Feb 27).
Japan’s benchmark Nikkei stock average .N225 was mostly steady in Friday (Feb 28) trade.
The 19-commodity Thomson Reuters/CoreCommodity CRB index , a bellwether for basic resource prices, settled flat for a second straight day on Thursday after the mixed performance across the complex.
Source: Reuters
