TOKYO, Nov 11 (Reuters) – Benchmark TOCOM rubber futures climbed to a 2-week high on Wednesday due to a weaker yen and as investors unwound short positions after drops last week, but gains may be capped by slumping global commodity prices.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: had climbed 2.5 yen, or 1.6 percent, to 161.1 yen ($1.31) per kg by 0035 GMT, after rebounding more than 2 percent the previous day. It earlier rose as far as 162.5 yen, the highest since Oct.29.
- New car sales in Russia fell 38.5 percent in October on the same period last year after a 28.6-percent drop in the previous month, the Association of European Businesses (AEB) lobby group said on Tuesday
MARKET NEWS
- Against the yen, the greenback fetched 123.19 JPY= , holding near a 2-1/2 month peak of 123.60 set on Monday.A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
- Zinc prices tumbled to their lowest in over five years on Tuesday, hit by a strong dollar, worries about oversupply and concern over faltering demand in top metals consumer China. U.S. crude oil prices fell in early Asian trading on Wednesday after industry data showed an increase in U.S.stockpiles, while fears that Japan’s economy may have fallen into recession added to demand woes.
- Japan’s share market was narrowly mixed on Wednesday as investors anxiously awaited another batch of Chinese data, while strength in the U.S.dollar kept the screws on global commodity prices.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
- 0530 China Industrial output Oct
- 0530 China Retail sales Oct
- 0530 China Urban investment Oct
- 0700 Germany Wholesale price index Oct
($1 = 123.0500 yen)
(Reporting by Yuka Obayashi)
