Benchmark TOCOM rubber futures inched up on Monday, helped by higher oil and metals prices at the end of last week, but trade was thin as investors looked for clues on the economic outlook in top buyer China and plans by top rubber producers in Asia to boost prices.
FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for October delivery <0#2JRU:> had risen 0.9 yen, or 0.4 %, to 206.9 yen per kg by 0055 GMT, after posting a second straight weekly gain following moves by top rubber producers to raise flagging prices.
* Sri Trang Agro-Industry and other leading rubber producers in Asia plan to raise prices sharply, ditching a system of pegging them near the benchmark set by the SICOM exchange in Singapore.
* Goodyear Tire & Rubber Co will invest US$550 million to build a new plant in Mexico, the company and the country’s economy minister said on Friday.
* Data on Friday showed U.S. business investment spending plans fell for a seventh straight month in March, suggesting the economy was struggling to rebound.
* China will do more to bolster its cooling economy as its policymakers still have room to increase support, a senior official at the country’s top economic planner said on Friday.
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MARKET NEWS
* Oil prices diverged on Friday, with Brent hitting 4-1/2-month highs on continued fighting in Yemen as U.S. crude fell on concerns of another upcoming stock build, though both benchmarks headed toward weekly gains.
* A sharp drop in Shanghai inventories coupled with a weaker dollar boosted copper on Friday, offsetting weak Chinese factory data that sent the industrial metal to a month low this week.
* The U.S. dollar was buying 118.91 yen, down from 119.25 yen in Friday evening trade in Asia and well below last week’s high of 120.10 yen touched on Thursday.
* Japan’s benchmark Nikkei stock average was down slightly in Monday trade, after equity markets worldwide climbed to record highs on Friday as solid corporate earnings and an all-time peak for the Nasdaq stock index stoked investor optimism.
DATA/EVENTS (GMT)
* The following data is expected on Monday: (Time in GMT)
0600 Germany Import prices March
1345 U.S. Markit Comp Flash PMI April
1345 U.S. Markit Svcs PMI Flash April
1430 U.S. Dallas Fed Mfg Bus Index April – Reuters