Benchmark TOCOM rubber futures dropped early on Wednesday (Sept 3) as lower crude oil prices offset a rise in Japanese equities and a weaker yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for February delivery had fallen 0.4 yen to 199.8 yen per kg by 0016 GMT, after finishing 3.8 yen higher on Tuesday (Sept 2).
Japanese Prime Minister Shinzo Abe is expected to co-opt a rival and draft more women to spruce up his image while keeping key ministers when he reshuffles his cabinet on Wednesday (Sept 3), a rejig dictated more by political dynamics than policy matters.
U.S. manufacturing activity hit a nearly 3-1/2-year high last month and construction spending rebounded strongly in July, signs the economy entered the third quarter on strong footing.
MARKET NEWS
The U.S. dollar was quoted around 105.19 yen early on Wednesday (Sept 3) as the upbeat U.S. manufacturing data helped lift the greenback to an eight-month high against the Japanese currency.
Japan’s benchmark Nikkei stock average rose 0.7 percent in Wednesday (Sept 3) trade as the weaker yen lifted sentiment for exporters.
Zinc climbed to a four-week high and aluminium neared an 18-month peak on Tuesday (Sept 2) in markets driven by momentum-based speculators and computer-driven funds.
Brent crude oil futures fell to the lowest level in 16 months on Tuesday (Sept 2), pressured by the prospect of slowing oil demand growth in China and Europe, while a strong dollar and ample supplies pushed U.S. prices to a seven-month low.
– Reuters
