TOKYO, Oct 1 (Reuters) – Key Tokyo rubber futures edged down on Tuesday after key manufacturing data in China came in below expectations, raising investors concerns that the economy in the world’s biggest rubber consumer has weakened.
FUNDAMENTALS
The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery JRUc6 0#2JRU: was down 0.4 yen, or 0.15 percent, at 265.3 yen per kg by 0128 GMT.
The contract settled down 1.7 percent on Monday after trading as low as 264.1 yen, its weakest level since Aug. 22. [ID:L4N0HQ1LD]
China’s manufacturing growth edged up only slightly in September with the official Purchasing Managers’ Index (PMI) at 51.1 from from August’s 51.0, below expectations and adding to worries that its economic recovery has foundered. (Full Story)
Shanghai rubber market is closed on Oct 1-7 for National Day holiday.
The U.S. Congress, still in partisan deadlock on Monday over Republican efforts to halt President Barack Obama’s healthcare reforms, was on the verge of shutting down most of the U.S. government starting on Tuesday morning. (Full Story)
The U.S. auto industry’s sizzling summer pace stalled in September for the first year-on-year sales decline in more than two years as the month suffered because part of the Labor Day shopping weekend landed in August and there were two fewer days than last year to buy. (Full Story)
Japanese manufacturers’ sentiment improved sharply in the three months to September to a near six-year high, a closely-watched central bank survey showed, cementing the case for Premier Shinzo Abe to proceed with a planned sales tax hike next year. (Full Story)
A beefed-up vehicle warranty law that takes effect in China on Tuesday is unlikely to burden global automakers, but will likely raise costs for smaller local players that may add to pressure for eventual consolidation in China’s fragmented car industry. (Full Story)
For the top stories in rubber market and other news, click TOP/MACRO RUB/T or COM/WRAP
MARKET NEWS
The dollar was subdued in Asia on Tuesday and vulnerable against safe-haven currencies with Washington still locked in a bitter struggle just hours ahead of a midnight deadline that will see much of the U.S. government begin to shut down. The dollar was quoted around 98.31 yen JPY= in Asia. FRX/
Japan’s benchmark Nikkei stock average .N225 rose about 0.5 percent in early Tuesday trade.
Oil and metals fell on Monday on fears of an imminent U.S. government shutdown and grains tumbled on oversupply concerns, while gold slipped for the session amid strong quarterly gains. COM/WRAP
DATA EVENTS
The following data is expected on Monday: (Time in GMT)
0100 China Official manufacturing PMI
0743 Italy Markit/ADACI manufacturing PMI
0748 France Markit manufacturing PMI
0753 Germany Markit/BME manufacturing PMI
0755 Germany Unemployment rate
0758 Euro zone Markit manufacturing PMI
0900 Euro zone Unemployment rate
1145 U.S. ICSC weekly chain store sales
1258 U.S. Markit manufacturing PMI final
1400 U.S. Construction spending
1400 U.S. ISM manufacturing index
(Reporting by Yuka Obayashi; Editing by Richard Pullin)

Source: Reuters

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