TOKYO, April 10 (Reuters) – Tokyo rubber futures hit a
five-month high on Friday but reversed gains to fall 1 percent as
a firmer yen hurt investor sentiment.
* Falls in platinum and gasoline futures in Tokyo also sapped
the momentum for rubber, which had been boosted in part by
bullish technical charts. The U.S. oil futures market was closed
for the Easter holiday.
* The key Tokyo Commodity Exchange rubber contract for
September delivery <0#JRU:> ended down 0.4 yen or 0.2 percent at
174.3 yen per kg.
* The contract earlier rose as high as 178.0 yen, the highest
for any benchmark since Nov. 14.
* “The yen edged up and the stock market didn’t rise so much.
That’s sapping the momentum in rubber as well as other
commodities here,” said a manager at a Japanese trading firm.
“As for rubber, fundamentals have had little to do with it.
It’s been driven by external factors in the past few weeks, such
as currencies and stocks,” he said.
* Technical charts suggest an uptrend towards 185 yen, the
manager said, adding that the current market rise without a major
recess could eventually result in a steep turnaround.
* The dollar reversed early gains against the yen and was
little changed at 100.45 yen, after climbing 0.8 percent on
Thursday. [USD/] A stronger yen deflates yen-based futures
prices.
* Japan’s Nikkei share average touched a three-month high
above the key 9,000 level before trimming gains as some players
took profits after a sharp rally. The Nikkei <.N225> ended up
0.54 percent. [.T]
* U.S. oil futures climbed nearly 5.8 percent on
Thursday, fuelled by a rally on Wall Street and data showing the
number of workers filing new claims for unemployment benefits
fell last week. [O/R]
* Japan is set to pass legislation to encourage consumers to
buy new cars as part of a $154 billion economic stimulus package,
including $2,500 in cash incentives for those replacing cars more
than 13 years old. [ID:nT195388]
* Prime Minister Taro Aso said on Friday Japan’s economy was
in crisis, as he announced government plans to spend $154 billion
to help lift the country out of its deepest recession since World
War Two. [ID:nT12543]
* Asian physical rubber prices were unchanged on Friday as
market participants in the region were mostly away for Easter.
* The Thai government called a holiday for Friday as it
struggles with the impact of political unrest that has caused
traffic chaos in Bangkok. It also aims to provide better security
for an Asian summit this weekend. [ID:nBKK467316]
* Financial markets in Singapore and Indonesia were closed
for the Easter holiday.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (May) $1.70/kg unchanged
Thai RSS3 (Jun) $1.70/kg unchanged
Thai STR20 (May) $1.65/kg unchanged
Thai STR20 (Jun) $1.65/kg unchanged
Malaysia SMR20 (May) $1.63/kg unchanged
Malaysia SMR20 (Jun) $1.63/kg unchanged
Indonesia SIR20 (May) $0.68/lb unchanged
Indonesia SIR20 (Jun) $0.68/lb unchanged
Thai USS3 53.0 baht/kg unchanged
Thai 60-percent latex (drums, May) $1,320/tonne unchanged
Thai 60-percent latex (bulk, May) $1,200/tonne unchanged

Source: Reuters

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