Tokyo Futures Rise On Firmness In Other Commodities

Key Tokyo rubber futures rose on Wednesday (May 25), tracking other commodities higher, while market participants kept a close eye on Shanghai futures to gauge demand from China, the world's top consumer of rubber.
FUNDAMENTALS
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 6.6 yen or 1.8 percent to 382.5 yen per kg as of 0019 GMT.
The May contract will expire later on Wednesday (May 25), and the benchmark will switch to November delivery from Thursday (May 26).
Some dealers have said they expect futures to rise after the price finished above resistance at 370 yen on Tuesday (May 24).
The most active contract on the Shanghai rubber market for September delivery rose 785 yuan to settle at 31,615 yuan ($4,860.174) per tonne on Tuesday (May 24).
Oil prices were lower in early Asia on Wednesday (May 25) after rising 2 percent the day before in choppy trading when Goldman Sachs raised its price forecasts for Brent crude, saying demand from economic growth will eat into stockpiles and OPEC spare capacity.
The euro rose against the dollar in early Asia on Wednesday (May 25) following a slight relief rally across most markets after Monday's (May 23) widespread sell-off. Investors are encouraged by Spain's successful short-term debt offering and better-than-expected data from Germany and the United States.
MARKET NEWS
Japan's exports fell 12.5 percent in April from a year earlier, pushing the country into its first trade deficit in three months, Ministry of Finance data showed on Wednesday (May 25), after the earthquake in March disrupted supply chains and hurt output.
The volume of Japan's customs-cleared crude oil imports fell 14.0 percent in April from the same month a year earlier, the Ministry of Finance said on Wednesday (May 25).
Federal Reserve officials on Tuesday (May 24) expressed confidence in the U.S. economic recovery despite high gas prices and European financial jitters, and one suggested the U.S. central bank could reverse its ultra-loose monetary policy this year.
JK Tyre and Industries is looking to acquire a rubber plantation to offset rising input costs that are eroding the tyre maker's profits, a top official said on Tuesday (May 24).
Japan's benchmark Nikkei stock average opened up 0.16 percent.
U.S. stocks dipped in light volume on Tuesday (May 24) as lingering concerns about a slowdown in growth more than offset gains in energy shares.
(Reuters, May 25, 2011)