Tokyo futures down 2.4 pct, monetary easing eyed (July 9)

TOKYO, July 9 (Reuters) – Key TOCOM rubber futures ended Monday down 2.4 percent at their weakest in almost a week after weak U.S. and Chinese data rekindled worries over the sluggish global economy, but hopes of further easing by the United States and China limited losses.

Friday’s weak U.S. employment report and data on Monday showing China’s inflation rate had eased more than expected in June weighed on equity and risky assets and boosted pressure for the governments to take fresh measures to prop up the economy.

“The market is pinning hope that the U.S. will soon take fresh steps towards further monetary easing ahead of the Nov. 6 presidential election, which will bolster risky assets such as crude oil and shares,” said Satoru Yoshida, analyst at commodity trading company Dot Commodity.

The U.S. Federal Reserve should loosen policy further with a new round of bond purchases as a way to bring down unemployment, even at the risk of driving inflation temporarily higher, one of the Fed’s most dovish policymakers said on Monday.

China’s consumer and producer prices eased more than expected in June, inflation data showed on Monday, signaling falling demand for goods from the world’s second-biggest economy and the likelihood of more growth-supporting policy moves from Beijing.

The key Tokyo Commodity Exchange rubber contract for December delivery <0#2JRU:> settled down 6.1 yen at 249.1 yen per kg. The benchmark contract earlier fell as low as 245.5 yen, down 3.8 percent or 9.7 yen, a level not seen since July 3.

The most active Shanghai rubber contract for September delivery <0#SNR:> closed down at 23,960 yuan per tonne compared to Friday’s 23,990 yuan.

The front-month August rubber contract <0#STF:> on the SICOM in Singapore was last traded at 291.5 U.S. cents per kg, down 1 cents.

Japan’s Nikkei share average fell back below the psychologically important 9,000-point level as surprisingly weak Japanese machinery orders fanned worries about faltering global growth sparked by the sluggish U.S. jobs figures.

But Brent crude climbed toward $99 a barrel as failed labour talks in Norway stoked worries of a total output shutdown.

(Reporting by Yuko Inoue;Editing by Clarence Fernandez)

Source: http://sg.finance.yahoo.com/news/rubber-tokyo-futures-down-2-080617589.html