Tokyo futures little changed after gain (Aug 7)

TOKYO, Aug 7 (Reuters) – Key TOCOM rubber futures stood little changed on Tuesday, tracking the Japanese stock market ahead of this week’s Bank of Japan policy meeting.

The BOJ is expected to keep monetary policy steady at its two-day meeting, but may escalate its warnings over slowing global demand and renewed gains in the yen, signalling its readiness to ease again if the economy’s recovery comes under threat.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> was changing hands 0.4 yen lower at 227.0 yen as of 0026 GMT. The benchmark contract rose 0.4 percent on Monday after a better-than-expected U.S. jobs report eased concern over growth in the world’s biggest economy.

MARKET NEWS

* U.S. stocks closed at three-month highs for the second day in a row on Monday, extending last week’s rally on the hope for more assistance for the troubled euro zone.

* The euro and commodity currencies held near multi-week highs on Tuesday, though a lack of fresh news out of the euro zone and a dearth of major economic data led to a draining of momentum from the market.

* Oil prices rose for a second straight session on Monday, closing at the highest level in 11 weeks, as U.S stock markets rallied to a three-month high and as traders eyed ongoing turmoil in the Middle East.

* Japan’s benchmark Nikkei average opened down 0.14 percent at 8,714.12 on Tuesday, while the broader Topix shed 0.01 percent to 735.67.

DATA EVENTS

* The following data is expected on Tuesday: (Time in GMT)

- 1145 US ICSC chain stores

- 1255 US Redbook

- 2030 US API weekly oil data

- US EIA releases short-term energy outlook (Reporting by Osamu Tsukimori; Editing by Richard Pullin)

Source: http://sg.finance.yahoo.com/news/rubber-tokyo-futures-little-changed-004208816.html