Tokyo Futures Ease on Firmer Yen, Oil Rise to Support

Key Tokyo rubber futures inched lower on Friday (May 20), as a firmer yen dampened sentiment, but a rise in oil prices was likely to lend support.
The key Tokyo Commodity Exchange rubber contract for October delivery edged down 1.5 yen, or 0.4 percent, to 379.9 yen per kg as of 0006 GMT from Thursday's (May 19) settlement of 381.4 yen.
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.
Oil prices were higher in early Asia on Friday (May 20), after falling more than $1 the day before when weak U.S. economic data stoked worries about demand, and the International Energy Agency suggested members could release emergency stocks if OPEC failed to act.
The euro was up against a broadly weaker dollar early in Asia on Friday (May 20), but the unresolved Greek debt crisis was seen capping its upside. The dollar also retreated from a two-week high of 2.23 yen.
Honda Motor Co Ltd's chief U.S. sales executive John Mendel said in a letter to U.S. dealers that there is enough inventory to support about 70 percent of sales volume year-to-date.
U.S. May auto sales are off to a "dismal start" as lower sales incentives, thinner inventories and high gasoline prices are curbing consumer purchases, J.D. Power and Associates said on Thursday (May 19). The lower inventories due to the aftermath of the Japan earthquake and auto parts supplier problems have meant some vehicles are not readily available.
Weak data on U.S. home sales and factory activity showed an economy stuck in low gear though a drop in claims for jobless aid offered hope the labour market's recovery was on track.
(Reuters, Tokyo, May 20, 2011)