Benchmark TOCOM rubber futures edged up early on Tuesday, taking back some of the previous day’s losses, with major moves limited ahead of economic data due later from top buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery was up 2.6 yen at 213.3 yen per kg by 0019 GMT, after finishing 4.3 yen lower on Monday.
China’s vast factory sector probably registered its best performance this year in June as growth quickened to a six-month high, further signalling that its economy is regaining strength after an unsteady start to 2014.
Big Japanese manufacturers’ business sentiment worsened in the three months to June but is poised to improve in the following quarter, a central bank survey showed on Tuesday, adding to signs the economy will shrug off April’s sales tax hike.
Japanese carmakers boosted investment in their U.S. plants by more than $5 billion in 2013, the biggest increase on record, new figures from the Japan Automobile Manufacturers Association showed on Monday.
Annual profit growth of China’s banks could slow to 9 percent in 2014 as they face increased liquidity and lending risks due to slower economic growth and Beijing’s battle on excessive factory capacity, the banking industry body said a report on Monday.
MARKET NEWS
The U.S. dollar was quoted around 101.37 yen early on Tuesday, down after a recent batch of mixed data cast doubts on the strength of the U.S. economic recovery.
Japan’s benchmark Nikkei stock average rose 0.6 percent in Tuesday trade, getting a boost from the Bank of Japan’s tankan quarterly survey which showed that business sentiment looks to improve over the coming months.
Brent crude fell toward $112 a barrel on Monday, hitting an 18-day low as did U.S. crude near $105, as investors grew less worried about potential supply disruptions from Iraq.
– Reuters
