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TOKYO, Nov 29 (Reuters) – Key Tokyo rubber futures inched higher on Monday, helped by the yen weakening against the dollar and a rise in oil prices.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#JRU:> advanced 0.7 yen, or 0.2 percent, to 355.9 yen per kg as of 0012 GMT.
* The May contract fell as much as 11 yen, or 3 percent, to 351.7 yen on Friday. It settled at 355.2 yen for a weekly loss of 4.3 percent, the biggest since early July, according to Reuters data.
* The Shanghai Futures Exchange said on Thursday it will raise margin requirements and widen daily price move limits on its contracts from next week. [ID:nSGE6AO0G6]
* Traders said such a move could trigger liquidation of speculative positions.
* The most active Shanghai rubber futures contract for May delivery fell by its limit and settled at 30,375 yuan ($4,567) per tonne on Friday, down from Thursday’s close of 31,280 yuan. Volume stood at 764,610 lots.
* Oil rose to above $84 a barrel on Monday, after edging lower in light post-holiday trading in the United States on Friday when Europe’s debt crisis pushed the euro to a two-month low against the dollar. But pipeline and refinery snags and geopolitical tensions helped limit oil’s losses. [O/R]
* The dollar rose to its highest in two months against the yen on Monday at above 84.18 yen . A weaker yen supports yen-priced TOCOM futures as it inflates their yen value. [USD/]
MARKET NEWS
* Japanese retail sales fell 0.2 percent in October from a year earlier, below a median market forecast for a 0.7 percent annual increase, government data showed on Monday. [ID:nTKZ006654]
* South Korea’s top automaker Hyundai Motor Co <005380.KS> and its Chinese partner broke ground on Sunday for a third plant to ease their undercapacity in the world’s largest auto market. [ID:nTOE6AR01F]
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.7 percent from a week earlier, the exchange said on Friday. [ID:nBJD000130]
* Japan’s benchmark Nikkei stock average <.N225> opened up 0.36 percent at 10,075.66 on Monday, while the broader Topix <.TOPX> gained 0.22 percent to 868.69. [.T]
* S&P 500 stock index futures rose at the start of trade on Sunday after the EU approved an 85 billion euro ($115 billion) rescue for Ireland. [.N]
Source: Reuters