Key TOCOM rubber futures jumped 3.1 percent to a five-month high early on Monday as a policy easing by China and prospects for Greece to clinch a second bailout sent shares and oil prices higher, while the yen sagged to a six-month low against the dollar.
The key Tokyo Commodity Exchange rubber contract for July delivery was changing hands up 9.2 yen or 2.9 percent at 327.2 yen as of 0040 GMT. The contract rose as high as 328.1 yen, up 3.1 percent or 10 yen, breaking above a recent resistance point around 325 yen.
China's central bank on Saturday cut its reserve requirement ratio (RRR) - the amount of cash banks must hold in reserves - boosting lending capacity by an estimated 350-400 billion yuan ($55.6-63.5 billion).
Eurozone finance ministers are expected to approve a 130 billion euro rescue programme for Greece at a meeting on Monday, and while there is still scepticism over Athens' commitments - including implementing 3.3 billion euros of spending cuts and raising taxes - officials said momentum was behind approving the deal.
Honda Motor Co's joint venture with Guangzhou Automobile Group Co Ltd is targeting a 10 percent rise in sales this year after last year's figures were hit by the earthquake in Japan and floods in Thailand, the China Daily reported on Monday.
The yen fell to six-month lows on the greenback on Monday, while commodity currencies jumped after China's central bank joined other major counterparts globally in taking steps to stimulate growth. US crude futures rose to a fresh nine-month high on Monday after Iran halted oil sales to Britain and France.
Japan's Nikkei share average rose 1.6 percent to break above its one-year moving average in early trade on Monday, encouraged by China's move to stimulate growth by cutting the amount of cash banks must hold in reserve.
Comments
Comments are closed for this article.