Benchmark TOCOM rubber futures hovered around a near one-month high in early Wednesday (Jul 30) trade as higher Japanese equities and a weaker yen continued to support the soft commodity.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery fell 0.3 yen to 212.5 yen per kg by 0027 GMT.
On Tuesday, the benchmark contract rose 7.0 yen to an intra-day high of 213.5 yen per kg, the highest since July 4, before finishing 6.3 yen higher for the day.
Japan’s industrial output fell 3.3 percent in June as companies curbed production due to a pile-up in inventories, government data showed on Wednesday, but manufacturers expect output to rise in the coming months.
Auto sales in Thailand are expected to fall 31 percent in 2014 after months of political unrest, but sales could recover in 2015 as the domestic economy and consumption improves, Toyota Motor Corp’s Thai unit said on Tuesday (Jul 29).
U.S employment growth likely retained enough momentum in July to help buoy the economy for the rest of the year, with nonfarm payrolls likely increasing by 233,000 this month, according to a Reuters survey of economists.
MARKET NEWS
The U.S. dollar was quoted around 102.10 yen early on Wednesday (Jul 30), moving above 102 yen for the first time in over three weeks as the greenback felt broad strength against a swath of currencies.
Japan’s benchmark Nikkei stock average edged up 0.2 percent in Wednesday (Jul 30) trade, as the weaker yen boosted sentiment for the index’s main manufacturers.
U.S. crude oil futures regained some of the previous day’s losses to trade above $101 early on Wednesday (Jul 30), after industry data showed U.S. petroleum stockpiles fell much more sharply than expected.
Reuters, July 30, 2014
