TOKYO, April 27 (Reuters) – Key Tokyo rubber futures fell on Tuesday as investors took profits from recent gains amid falling oil prices, but underlying sentiment remained bullish due to tight supply.
* The key Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:>, which debuted on Monday, settled down 4.4 yen or 1.4 percent at 311.8 yen per kg. The contract rose on Monday on tight supply, a weaker yen and rising oil prices.
* But the nearby contract for May delivery bucked the trend and rose, due to the problem of delays in cargoes to deliver through TOCOM, keeping upward pressure on the spot contract.
* Tokyo rubber futures are expected to continue gaining on tight physical supply, strong demand from China and lower costs compared with spot physical prices. [ID:nSGE63M0DX]
* Mazda Motor Corp <7261.T> and Mitsubishi Motors Corp <7211.T>, Japan’s No.5 and No.6 automakers, forecast a more than trebling in annual operating profit on Tuesday, counting on new models to ride a sales recovery in the United States and Japan. [ID:nTOE63Q05U]
* China said it sold 30,000 tonnes of natural rubber from state reserves at an open bidding last week, the National Development and Reform Commission said on Tuesday. [ID:nTOE63Q01O]
* Oil fell for a second day on Tuesday to trade below $84 a barrel as forecasts for repeated increases in U.S. inventories rekindled concerns of oversupply, while Greek debt woes also weighed. [O/R]
* Short-covering on the euro stalled on Tuesday after lifting it from a one-year low, and with traders seeing limited upside scope while markets watch how Greece progresses in securing emergency aid. [USD/]
* The yen gained against the dollar, which can dampen sentiment as a higher yen deflates yen-priced TOCOM futures.
* Japan’s Nikkei share average <.N225> rose 0.4 percent. [.T]

Source: Reuters

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