Benchmark TOCOM rubber futures rose early on Monday (Mar 31), but were still facing a 14 percent tumble over the first quarter as demand worries in top buyer China, weak Japanese equities and a firmer yen hit sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for September delivery was up 2.0 yen at 235.5 yen per kg by 0041 GMT, after finishing 3.4 yen lower on Friday (Mar 28).
Japan’s industrial output unexpectedly fell 2.3 percent in February from the previous month, down for the first time in three months, government data showed on Monday (Mar 31), a sign factory activity is losing momentum before a sales tax hike that kicks in on April 1.
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The clock is ticking for Thai Prime Minister Yingluck Shinawatra, who faces impeachment within weeks, but her supporters are hatching plans to thwart any move to dismiss her, with some leaders assembling what amount to militias.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 4.1 percent week-on-week, the exchange said on Friday (Mar 28).
China’s Premier Li Keqiang sought to reassure jittery global investors that Beijing was ready to support the cooling economy, saying the government had the necessary policies in place and would push ahead with infrastructure investment.
MARKET NEWS
The U.S. dollar was quoted around 102.87 yen early on Monday (Mar 31), edging higher as the Japanese currency lost some of its lustre as a safe-haven currency.
Japan’s benchmark Nikkei stock average rose 0.8 percent in Monday (Mar 31) trade, as investors in equities markets across Asia held out hopes that China would take steps to stimulate the economy.
U.S. crude oil traded near a three-week high above $101 a barrel on Monday (Mar 31), buoyed by simmering tensions between Russia and the West and disruptions to African oil supplies.
Reuters
