TOKYO: Key Tokyo rubber futures settled up 0.9 percent in thin trade on Thursday, losing momentum as oil prices weakened, after rising as much as 2.8 percent earlier on gains in commodities and the dollar's rise against the yen.
The key Tokyo Commodity Exchange rubber contract for October delivery settled up 3.3 yen at 381.4 yen ($4.664) per kg. The benchmark contract rose as high as 388.7 yen before profit-taking emerged.
The most active Shanghai rubber contract for September delivery closed up 260 yuan, or 0.8 percent, at 31,580 yuan ($4,853.85) per tonne. Volume stood at 1,317,480 lots.
‘The market lacked direction, with no market-moving factors in sight except Bridgestone's bullish earnings forecast last week,’ said Kazuhiko Saito, chief commodities analyst at trading company Fujitomi Co. Investors were also wary of the demand outlook and more supply in producing countries as they start tapping, he said.
Bridgestone Corp , the world's biggest tyre maker, last week boosted its earnings outlook for the year to December, after reporting that it swung to the black in the first nine months of this year on brisk tyre sales in overseas markets.
Oil rose on Thursday for a second session as an unexpected drop in crude inventories in the United States helped prices rebound while wildfires in Alberta threatened Canadian supply.
That followed the biggest rise in commodities in two months on Wednesday, rebounding from a two-week slump with buyers lured in by lower-than-expected US oil stocks and poor crop weather in the United States and Europe.
The dollar rose to a three-week high against the yen on rebounds in US bond yields following the release of minutes of the Federal Reserve's April meeting that raised speculation a rate hike could come sooner then previously thought.
Japanese automakers are slowly getting back on their feet after the massive March 11 earthquake disrupted the sector's supply chains, affecting car output in Japan and globally.
Renesas Electronics Corp, a major supplier of semiconductor chips to the auto industry, said on Wednesday that it would restore supply to prequake levels by the end of October, after the disaster damaged one of its main plants.
Japanese automobile and auto parts makers collectively agreed to work on weekends and rest instead on Thursdays and Fridays to ease the burden on the grid during peak power consumption months in the summer, an industry lobby said on Thursday.
The Nikkei average closed down 0.43 percent as losses in power companies and worries over mixed macroeconomic signals and Japan's post-quake outlook outweighed gains by miners and trading houses on a rebound in commodity prices.
Wall Street snapped its three-day losing streak on Wednesday thanks to a rebound in commodity prices and Dell's strong earnings, but investors said stocks still face headwinds.
Comments
Comments are closed.