Benchmark TOCOM rubber futures rose on Tuesday (Sept 9) after the yen hit a six-month low against the dollar, but gains were capped by a drop in crude oil prices the previous day.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for February delivery had risen 0.7 yen to 197.3 yen per kg by 0015 GMT, after finishing 1.1 yen lower on Monday (Sept 8).
Some Bank of Japan policymakers said that Japan’s exports could be slow to respond to developments in overseas economies due to structural changes, such as a shift in production overseas, minutes of the central bank’s August meeting showed on Tuesday (Sept 9).
India’s natural rubber imports in August rose 15 percent from a month ago to 42,499 tonnes as a drop in global prices prompted tyre makers to raise overseas purchases to meet rising local demand, an official at the state-run Rubber Board said on Monday (Sept 8).
China’s import growth unexpectedly fell for the second consecutive month in August, data showed on Monday (Sept 8), posting its worst performance in over a year and stoking speculation about whether authorities should loosen policy further to revive domestic demand.
MARKET NEWS
The U.S. dollar was quoted at a six-year high of 106.07 yen early on Tuesday (Sept 9), with sentiment lifted in part as a U.S. central bank study sparked more buying interest in the greenback.
Japan’s benchmark Nikkei stock average rose 0.5 percent in Tuesday (Sept 9) trade, as the weaker yen lifted sentiment for exporters.
Copper rose on Monday (Sept 8) as weak Chinese import data prompted speculation about looser monetary policy from Beijing, while nickel hit a two- month high on worries over potential supply constraints from the Philippines. L
Brent crude fell below $100 a barrel on Monday (Sept 8), the first time in 16 months, before returning to close in three-digit territory but down on the day as fear of OPEC output cuts helped the market recover from weak Chinese and U.S. data.
(Reuters, September 9, 2014)
