Benchmark TOCOM rubber futures rose further on Wednesday (Apr 16) supported by Japan’s Nikkei stock index, a softer yen and ahead of economic data from top buyer China later in the day.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for September delivery was up 0.9 yen at 216.4 yen per kg by 0025 GMT, after finishing 1.5 yen higher on Tuesday (Apr 15).
China is expected to report its slowest growth in five years on Wednesday (Apr 16), a Reuters poll shows, with signs of waning strength in the first quarter of 2014 already prompting government action to steady the world’s second-largest economy.
Japan’s government is set to cut its overall assessment on the economy in its monthly report to be released soon, taking into account an expected hit to private consumption from the April 1 sales tax hike, the Nikkei business daily reported.
U.S. consumer prices firmed a bit in March, as food and housing rental costs rose in a possible sign that a disinflationary trend had run its course.
MARKET NEWS
The U.S. dollar was quoted around 102.06 yen early on Wednesday (Apr 15), slightly higher, but unable to make a major move as investors kept an eye on developments in Ukraine and ahead of the Chinese economic data release.
Japan’s benchmark Nikkei stock average rose 1.7 percent in Wednesday (Apr 15) trade, as overnight gains on Wall Street lifted sentiment for the index.
Benchmark Brent oil rose slightly on Tuesday (Apr 15) after news that Ukrainian armed forces launched military operations in the east of the country, though gains were limited by the prospect of a resumption of oil exports from Libya.
– Reuters
