TOKYO, Oct 7 (Reuters) – Benchmark TOCOM rubber futures rose on Tuesday as gains in base metals and crude oil offset the impact of falls in Japanese equities and a firmer yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for March delivery JRUc6 0#2JRU: had risen 0.4 yen to 176.8 yen per kg by 0011 GMT, after finishing 0.5 yen lower on Monday.(Full Story)
The Bank of Japan is likely to maintain its massive monetary stimulus on Tuesday and offer a bleaker view on factory output, following signs that the world’s third-largest economy was hit harder than expected by a sales tax increase six months ago. (Full Story)
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The World Bank cut its 2014-2016 growth forecasts for developing East Asia on Monday, noting that China was likely to slow due to policies aimed at putting the economy on a more sustainable footing, and it also cautioned of capital-flight risks to Indonesia. (Full Story)
Top rubber producers will meet in Malaysia next week to discuss measures to support prices, Thailand’s Agriculture Minister said on Monday, as farmers reel from a slide in the value of the commodity to a five-year low.
MARKET NEWS
The U.S. dollar was quoted around 108.89 yen JPY= early on Tuesday, falling further from a six-year peak hit last week as the greenback reversed almost all of the gains it took from last week’s better-than-expected U.S. payrolls data. FRX/
Japan’s benchmark Nikkei stock average .N225 fell 0.4 percent in Tuesday trade, after U.S. equities ended lower in choppy trading the previous day. MKTS/GLOB
Zinc, copper and other base metals rose on Monday after investors were reassured by strong U.S. jobs data, and commodity markets had a respite from the recent buoyant dollar. MET/L
Crude oil futures reversed course on Monday after a massive sell-off last week and ended higher on a slump in the U.S. dollar.
Source: Reuters
