TOKYO, Aug 8 (Reuters) – Benchmark TOCOM rubber futures rose to a 1-week high on Monday, helped by a weaker yen against the dollar after bumper U.S.job figures bolstered expectations of faster economic growth and raised the probability of an interest rate increase this year.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 1.9 yen, or 1.2 percent, at 155.6 yen ($1.52) per kg as of 0043 GMT, after earlier touching its highest since July 29 at 156.8 yen. RUB/T
U.S.employment rose more than expected for the second month in a row in July and wages picked up, bolstering expectations of faster economic growth, and raising the probability of a Federal Reserve interest rate increase this year.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.6 percent from the prior Friday, the bourse said on Friday.
The dollar firmed against the yen to 102.13 yen JPY= , gaining 0.3 percent in early Monday trade and extending its slow recovery from Tuesday’s three-week low of 100.68. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) climbed 1.9 percent in Monday trade, after a stronger-than-expected July jobs report lifted confidence in the strength of the U.S.economy.
Oil prices rose in early trading on Monday, lifted by reports of renewed talks by some members of the Organization of the Petroleum Exporting Countries (OPEC) to restrain output. O/R
The following data is expected on Monday: (Time in GMT)
China Trade data Jul 0600 Germany Industrial output Jun
0830 Euro zone Sentix index Aug
1400 U.S. Employment trends Jul (No fixed timing for China trade data)
($1 = 102.0900 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)