Benchmark TOCOM rubber futures fell to a five-year low early on Wednesday (Sept 10), following a tumble in Brent crude oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for February delivery had fallen 1 yen to 190.0 yen per kg by 0018 GMT, after dropping as far as 188.5 yen – its lowest since July 2009.
The benchmark rubber contract finished 5.6-yen lower on Tuesday (Sept 9).
Japan’s core machinery orders rose 3.5 percent in July, government data showed on Wednesday, marking the second straight month-on-month gain in a sign of a gradual pick-up in capital spending.
Thai auto parts maker Somboon Advance Technology said on Tuesday (Sept 9) it expected 2014 revenue to fall 10 percent from a year earlier, in line with the weak domestic industry hit by months of political unrest.
A Federal Reserve official on Tuesday (Sept 9) warned the biggest U.S. banks they would soon face new funding rules that exceed international standards, a move he said could lead some firms to shrink rather than face the strict requirements.
MARKET NEWS
The U.S. dollar was quoted around 106.11 yen early on Wednesday (Sept 10), just under a six-year high hit the previous day when gains in U.S. Treasury yields supported the greenback.
Japan’s benchmark Nikkei stock average dropped 0.5 percent in Wednesday (Sept 10) trade, after U.S. equities fell the previous day.
Nickel shed over 5 percent on Tuesday (Sept 9) after worries faded about a squeeze on supply from the Philippines, and other metals were knocked by a robust dollar that hit a 14-month high.
Brent crude oil prices fell to a 17-month low below $100 per barrel in volatile trade on Tuesday (Sept 9), a fourth straight daily decline as ample supplies weighed, while U.S. crude rose on the expectation of dwindling fuel stockpiles.
(Reuters, September 10, 2014)
