Benchmark TOCOM rubber futures edged down from a two-month high early on Tuesday (June 24), falling for the first time in six sessions, as declines in crude oil prices and Japanese equities hit buying sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for November delivery was down 1.5 yen at 216.8 yen per kg by 0021 GMT, after finishing 5.6 yen higher on Monday (June 23).
The November contract, which is set to lose its benchmark status when the December contract starts trading on Wednesday, hit an intra-day high on Monday (June 23) of 219.5 yen – its highest level since April 16.
Japanese Prime Minister Shinzo Abe is set to unveil measures ranging from phased corporate tax cuts and public pension reforms to proposed dance hall deregulation, but the latest salvo from his three-pronged strategy for economic revival may disappoint some investors urging more radical steps.
U.S. home resales rose more than expected in May and the stock of properties for sale was the highest in more than 1-1/2 years, suggesting the housing sector was pulling out of a recent slump.
Activity in China’s factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday (June 23), offering new signs the economy is stabilising thanks to Beijing’s measures to shore up growth.
MARKET NEWS
The U.S. dollar was quoted around 101.86 yen early on Tuesday (June 24), most steady from Monday.
Japan’s benchmark Nikkei stock average fell 0.6 percent in Tuesday (June 24) trade, coming off a five-month closing high hit on Monday (June 23).
Brent crude recorded its largest one-day decline in seven weeks on Monday (June 23), falling toward $114 a barrel as oil exports from Iraq remained unaffected by Islamic insurgents’ continued advance on Baghdad.
– Reuters
