IRCo's DCP moved back to 550.76 US cents/kg on Friday while Tokyo and Shanghai rubber futures and cash prices in the region also fell back from higher levels on an earlier Friday due to some profit taking and weakness in commodity markets in the middle of the week. However, strong market fundamentals and positive technical indicators still lent support for rubber prices to float above 500 US cents/kg. The rubber market in the coming week will be subdued as Chinese buyers will take the week-long Lunar New Year holiday break starting 2 February.
Asian stock markets ended mostly lower on Friday after Standard& Poor cut Japanese sovereign debt rating on Thursday, and concerns about the lingering violence in Egypt dampened market sentiment on stock markets in Europe and Wall Street but pulled up crude oil futures on Nymex.
On the forex market, the Japanese yen strengthened slightly against its rivals on Friday as investors bet that Standard & Poor's downgrade of Japan's sovereign debt rating wouldn’t drag heavily on the currency ahead, as the move appeared unlikely to substantially tarnish the unit's role as a safe-haven asset, according to a report by Dow Jones. In the meantime, Thai baht, Indonesian rupiah, and Malaysian ringgit also got support from the strengthening Japanese yen.
Furthermore, it is expected that the decisions by Beijing to raise the minimum down payment on second-home purchases to 60.0% from 50.0% on Wednesday and to introduce its first property tax on the new second home in the range of 0.4% to 1.2% of purchase prices on Friday can cool down its overheated economy at some levels.
(Source: http://www.irco.biz/MarketWise.php)
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