TOKYO, Dec 15 (Reuters) – Benchmark TOCOM rubber futures were steady on Tuesday in thin trade ahead of a widely expected U.S.interest rate increase by the Federal Reserve this week.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was up 0.2 yen at 166.5 yen ($1.37)per kg by 0112 GMT, after falling for a third session the previous day. RUB/T

Once the Fed lifts interest rates from near zero, the focus will turn to the other legacy of the crisis-era policies: the Fed’s swollen balance sheet.

It ends its two-day policy meeting on Wednesday.

Chinese leaders, meeting ahead of an agenda-setting conference, pledged on Monday to keep the country’s economic growth in a “reasonable range” in 2016 by expanding domestic demand and making supply-side improvements.

MARKET NEWS

U.S.crude rose nearly 2 percent Monday, recovering slightly after moving within a hair of 11-year lows, but analysts and traders said it is still too early to declare the market has reached its bottom.

Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Tuesday trade, after ending at a six-week low the previous day. .T

The dollar was flat at 121.04 yen JPY= in early Tuesday trade, having pulled back from a 6-week low of 120.35 the previous day.

Source: Reuters

TOKYO, Dec 14 (Reuters) – Benchmark TOCOM rubber futures extended declines for a third day on Monday, falling around 1 percent, weighed by a stronger yen against the dollar and worries about slowing demand by top consumer China.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: fell 1.8 yen to 166.2 yen per kg by 0033 GMT, after settling down 0.5 yen on Friday. The contract hit a low of 165.1 yen earlier, the lowest since Dec.2, also coming under pressure from the losses in other commodities such as oil.

Japanese business sentiment held steady in the three months to December, a closely-watched central bank survey showed on Monday, offering some relief to policymakers worried that global economic uncertainties could undermine corporate readiness to spend.

China’s output of key industrial commodities including coal and steel remained weak in November amid chronic oversupply as slowing construction demand took its toll.

November, with factory output growth picking up to a five-month high, signalling that a flurry of stimulus measures from Beijing may have put a floor under a fragile economy.

Saudi Basic Industries Corp (SABIC) said commissioning would begin at parts of its affiliate’s new elastomers facility Kemya Complex on Sunday following the completion of construction and mechanical works.

The project, estimated to cost $3.4 billion, is expected to supply over 400,000 metric tonnes per year of rubber, thermoplastic speciality polymers and carbon black to serve emerging local and international markets in Asia and the Middle East.

MARKET NEWS

The U.S. dollar was quoted around 120.83 yen JPY= , compared with around 121.99 yen on Friday afternoon.A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.

Japan’s benchmark Nikkei stock average .N225 was down 2.6 percent.

Source: Reuters