TOKYO, Jan 22 (Reuters) – Benchmark TOCOM rubber futures recovered after two days of losses on Friday, gaining more than 1 percent and on track for a weekly rise, as firmer oil prices and equity markets underpinned sentiment.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: rose 2.5 yen, or 1.6 percent, to 159.0 yen per kg by 0030 GMT.It was headed for a weekly gain of nearly 1 percent.

Asian stocks gained early on Friday, after the markets were given some breathing space when the European Central Bank hinted of more monetary policy easing, while crude oil extended an overnight rally. MKTS/GLOB

Fading growth and inflation prospects will force the European Central Bank to review its policy stance in March, President Mario Draghi said on Thursday.

Crude rubber inventories at Japanese ports stood at 9,973 tonnes as of Jan. 10, down 2.5 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.

MARKET NEWS

Japan’s benchmark Nikkei stock average (XC0009692440) jumped more than 3 percent in Friday trade, after the Draghi remarks raised stimulus hopes.

Oil prices rebounded over $1 a barrel from 12-year lows on Thursday, their biggest daily gain this year, as rallying financial markets gave some bearish traders reason to take profits on record short positions.

The dollar rose against the Japanese yen to around 117.75 yen JPY= early on Friday.The greenback had fallen to below 116 yen on Wednesday, its lowest since January 2015.

Source: Reuters

TOKYO, Jan 6 (Reuters) – Benchmark TOCOM rubber futures extended losses into a third day on Wednesday, sliding to 7-year lows on worries over weaker demand in top buyer China, slumping oil prices and a stronger yen.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: was down 1.8 yen, or 1.2 percent, at 148.8 yen per kg at 0118 GMT, after touching a low of 148.3 yen, its weakest since March 2009.

Automakers on Tuesday set a new U.S.sales record for 2015 even as December sales fell short of expectations, and most forecasters said sales should rise to another record this year.

Toyota Motor Corp (TOYOF) and its joint venture partners aim to sell 1.15 million vehicles in China this year, undershooting overall expectations for the world’s largest auto market.

MARKET NEWS

The yen held firm near multi-month highs against major currencies on Wednesday as concerns over sluggish global growth and choppy oil and financial markets prompted investors to seek shelter in the low-risk low-return currency. Against the dollar, the yen traded at 118.88 yen JPY= , not far from its 2-1/2-month high of 118.705 touched on Monday.

Oil prices dropped over 2 percent towards their 11-year low on Tuesday, as traders shrugged off growing tensions between two of the world’s biggest oil producers and focused instead on a stronger U.S. dollar and swelling U.S.crude inventories.

Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.3 percent in Wednesday trade, as floundering crude oil prices continued to dampen risk sentiment. MKTS/GLOB

Source: Reuters