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Markets

TOCOM dips on Shanghai plunge, profit-taking

Published Updated

TOKYO:* Tokyo Commodity Exchange (TOCOM) futures fell on Tuesday, weighed by a plunge in Shanghai futures in mid-day trade, and as investors took profits from the recent rally.

* The benchmark TOCOM rubber contract for September delivery

finished 1.7 yen, or 0.9 percent, lower at 191.1 yen ($1.71) per kg, sliding away from a 4-week high hit the previous day.

* The most-active rubber contract on the Shanghai futures exchange for September delivery tumbled 255 yuan to finish at 11,685 yuan ($1,742) per tonne, after hitting an about 2-week low earlier in the session.

* "Investors booked profits amid uncertainty over progress in the U.S.-China trade talks and ahead of China's GDP data," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

* China's first-quarter economic growth is likely to have cooled to the weakest pace in at least 27 years, a Reuters poll has showed, but a flurry of measures to boost domestic demand may have put a floor under slowing activity in March. China will report its Q1 gross domestic product (GDP) and March activity data on Wednesday.

* Japan's economy minister said he had "frank and good" trade talks with his U.S. counterpart on Monday, but stressed that currency rates should be discussed in a different context, between finance ministers.

* Japan's benchmark Nikkei stock average edged up to a fresh four-month high on Tuesday.

* The U.S. dollar quoted around 111.93 yen, compared with around 111.90 yen on Monday afternoon

* Oil prices edged down on Tuesday after a Russian minister said the nation and OPEC may boost crude output to fight the United States for market share, checking a recent rally driven by tighter global production.

* TOCOM's technically specified rubber (TSR) 20 futures contract for October delivery closed down 0.2 percent at 172.6 yen per kg

* The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 153.5 U.S. cents per kg, down 1.0 percent.

Copyright Reuters, 2019

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