Benchmark TOCOM rubber futures climbed on Thursday (Aug 14), moving away from a one- month low hit the previous day on a rise in machinery orders and stronger shares.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery had risen 1.7 yen to 199.8 yen per kg by 0017 GMT. It finished down 3.0 yen on Wednesday (Aug 13), when the contract traded at its lowest since July 15 at 196.6 yen.
Japan’s core machinery orders climbed 8.8 percent in June, up for the first time in three months after a record plunge the prior month, government data showed on Thursday (Aug 14).
A revival in India’s auto industry could lift imports of natural rubber for making tyres by a quarter this fiscal year, which would take inbound shipments to a record and may provide some support for global prices languishing at multi-year lows.
U.S. retail sales unexpectedly stalled in July, data showed on Wednesday (Aug 13), pointing to some loss of momentum in the economy early in the third quarter.
China’s economy showed further signs of softening in July despite a burst of government stimulus measures, data showed on Wednesday (Aug 13), suggesting more policy support may be needed to keep growth on track as a property downturn worsens.
MARKET NEWS
The U.S. dollar was quoted around 102.46 yen early on Thursday (Aug 14), or just under a one-week high hit the previous day.
Japan’s benchmark Nikkei stock average rose 0.5 percent in Thursday (Aug 14) trade, as gains in U.S. equities on Wednesday (Aug 13) boosted sentiment.
Copper fell to a seven-week low on Wednesday (Aug 13), dragged down by disappointing data on top consumer China’s property sector, which raised concerns about the outlook for the metal used in power and construction.
Brent crude oil rose by nearly $1 per barrel in choppy trading on Wednesday (Aug 13), recovering from a 13-month low as turmoil in Iraq and Libya kept concerns about potential supply disruptions in focus.
– Reuters
