TOKYO, April 25 (Reuters) – New benchmark TOCOM rubber futures rose on Monday as gains in oil prices and the yen’s drop against the U.S.dollar last Friday boosted investor appetite for risk.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for new October delivery JRUc6 0#2JRU: stood at 200.4 yen ($1.80) at 0037 GMT, up 2.3 yen, or 1.2 percent, from its opening price of 198.1 yen. It climbed 4.4 percent last week in its fourth straight weekly advance. RUB/T
Rubber inventories in warehouses monitored by the Shanghai
Futures Exchange climbed 0.8 percent from the prior Friday, the exchange said on Friday.
TOCOM April delivery expired at 195 yen on Friday.
Volkswagen AG (VLKPF) is optimistic that its positive sales trend from the two previous quarters will continue in China, the world’s biggest auto market, its China chief Jochem Heizmann said on Sunday.
China’s emission and fuel economy rules are making it tougher for Japan’s Toyota Motor Corp (TOYOF) to achieve its target of selling 2 million vehicles a year there by around 2025, the carmaker’s China chief said on Sunday.
Volkswagen announced on Friday a 4.1 billion euros ($4.6 billion) operating loss for 2015 as Europe’s largest automaker took a 16.2 billion euros hit to pay for its diesel emissions test-rigging scandal.
MARKET NEWS
Oil prices rose on Friday and notched their third straight week of gains as market sentiment turned more upbeat amid signs a persistent global supply glut may be easing.
Against the yen, the U.S. dollar slipped about 0.4 percent to 111.41 yen JPY= after it earlier rose as high as 111.90, its strongest since April 1. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was steady n Monday trade as investors awaited central bank meetings in the United States and Japan this week that are expected to hold clues to future policy moves. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0800 Germany Ifo business climate Apr
1400 U.S. New home sales Mar
1430 U.S. Dallas Fed manufacturing index Apr
($1 = 111.4000 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
