Tuesday, October 24, 2017

Tokyo futures gain on weaker yen, firm oil price

Benchmark TOCOM rubber futures extended gains on Wednesday, supported by a weaker yen and firm oil prices overnight.

FUNDAMENTALS

* The Tokyo Commodity Exchange rubber contract for March delivery had risen 0.6 yen to 198.9 yen ($1.75) per kg by 0016 GMT. The front-month contract for October delivery expires later in the day.

* Key Shanghai futures ended overnight trading down 0.2 percent.

MARKET NEWS

* Brent oil rose 1 percent on Tuesday after top exporter Saudi Arabia said it was determined to end a supply glut, while prices also drew support from forecasts of a further drop in U.S. crude inventories as well as nervousness over tensions in Iraqi Kurdistan.

* The U.S. dollar was quoted around 113.93 yen, compared with around 113.35 yen on Tuesday afternoon.

* Japan's benchmark Nikkei stock average was up 0.4 percent.

* The price of copper hit a one-week high on Tuesday, while other metals also gained as the dollar dipped and investors remained optimistic about global economic growth prospects, although risks of a slowdown remained, especially in top consumer China.

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