TOKYO, Sept 15 (Reuters) – Key Tokyo rubber futures rose 1 percent on Tuesday as bargain hunting set in a day after demand fears on news of U.S. trade restrictions over Chinese tyre imports triggered a broad sell-off.
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> rose 1.7 yen or 0.8 percent to 197.1 yen per kg. Futures slumped 9 percent on Monday.
* The contract fell as low as 189.2 yen in after-hours trading on Monday, dropping below the 190 yen level for the first time since July 31.
* “After the broad sell-off, the market is near the lower end of a bear trend, and if settlement prices keep around current levels for the next few days technical charts may improve,” said a trader at a Japanese brokerage.
* While the yen’s rise and weaker oil prices weigh on rubber, firmness in the physical market may help support sentiment in the futures market, he said.
* A U.S.-China trade dispute is driving tyre prices higher for American consumers and threatens to complicate business for U.S. auto companies in the booming Chinese market if unresolved, analysts said on Monday. [ID:nN14320725]
* The February contract last week hit 218.4 yen, the highest for any benchmark since October as buying by funds was encouraged by gains in other commodities such as gold and oil.
* The dollar rose against the yen on Tuesday but hovered near a seven-month low touched on Monday. A stronger yen hurts yen-priced futures prices.
* Oil steadied below $69 a barrel on Tuesday, capping losses as buoyant equities and the dollar’s fall against the euro helped to offset concerns about an inventory build ahead of the U.S. autumn season. [O/R]
* Japan’s crude rubber inventories totalled 6,712 tonnes as of Aug. 31, down 7.3 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.

Source: Reuters

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