TOKYO, Jan 9 (Reuters) – Key TOCOM rubber futures extended
gains to rise as high as 1.3 percent on Wednesday, bolstered as
the yen started weakening again and on a stock market rally,
although a decline in Shanghai prices dragged.
“Investors will likely stay on the sidelines in the rest of
the week ahead of a three-day weekend, but the market is firmly
supported at above 300 yen,” said Toshitaka Tazawa, analyst at
trading house Fujitomi Co, referring to a public holiday in
Japan on Monday.
The key Tokyo Commodity Exchange rubber contract for June
delivery <0#2JRU:> settled up 0.8 percent, or 2.4 yen,
at 308 yen per kg. The contract climbed as high as 1.3 percent,
or 4.1 yen, at 309.7 yen.
A rebound in the yen as part of broader market position
adjustments was short-lived, with the dollar erasing earlier
losses to rise 0.5 percent to 87.48 yen on sustained
expectations of further monetary easing in Japan. [USD/]
Japan’s benchmark Nikkei stock average <.N225> erased
earlier losses to end 0.7 percent higher, helped by the yen’s
weakness. [.T]
Brent futures steadied below $112 per barrel. [O/R]
The most active Shanghai rubber contract for May delivery
<0#SNR:> closed down 0.6 percent at 26,035 yuan per tonne.
The front-month February rubber contract <0#STF:> on SICOM
in Singapore last traded at 303 U.S. cents per kg, up 0.3
percent.
Prospects for the global economy remained patchy, with
India’s car sales likely posting their weakest growth in nine
years this financial year as the country’s automotive industry
battles with high interest rates and slowing economic
expansion.[ID:nL4N0AE323]
China, the world’s biggest energy consumer, will release its
December trade figures on Thursday and fourth-quarter economic
growth numbers on Jan. 18, while the ECB and Bank of England
will begin their policy meetings later in the day.
Reuters polls predicted that the trade numbers may show
marginal improvement in the economy, although weak U.S. and
European demand may weigh on exports. Economic growth may have
accelerated, ending seven quarters of weaker expansion.

Source: Reuters

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