Benchmark TOCOM rubber futures hit a fresh one-week high on Thursday (Aug 21), supported by a rally in Japanese equities and a weaker yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery had risen 3.6 yen to 202.9 yen per kg by 0016 GMT, its highest level since August 12.
The benchmark contract finished 1.4 yen higher on Wednesday (Aug 20).
Japan’s government is considering setting aside 1 trillion yen ($9.65 billion) for stimulus spending next fiscal year to help lessen the economic damage from a sales tax hike scheduled for October next year, the Nikkei newspaper reported on Thursday (Aug 21).
Crude rubber inventories at Japanese ports stood at 17,505 tonnes as of Aug. 10, down 4.7 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed on Wednesday (Aug 20).
The U.S. Federal Reserve hinted on Wednesday (Aug 20) that a surprisingly strong jobs market recovery could lead it to raise interest rates earlier than it had been anticipating
Thailand’s economic growth may be slightly lower than previously expected this year due to delays in government spending, minutes from the central bank’s last meeting showed on Wednesday (Aug 20).
MARKET NEWS
The U.S. dollar was quoted around 103.75 yen early on Thursday (Aug 21), just under a four-month high hit the previous day when the Federal Reserve’s July meeting sounded slightly hawkish.
Japan’s benchmark Nikkei stock average rose 0.5 percent in Thursday (Aug 21) trade, rallying for a ninth day as the weaker yen boosted sentiment for exporters.
Copper rose to a one-week high on Wednesday (Aug 20) as robust U.S. housing data overnight boosted sentiment and buyers in top metals consumer China took advantage of low prices to build stocks.
U.S. crude oil rose in choppy trading on Wednesday (Aug 20) ahead of the September contract’s expiration and after government data showed crude stocks in the United States fell sharply last week.
(Reuters, August 21,2014)
