Market and product
Tokyo futures slip after disappointing China data
TOKYO, Aug 13 (Reuters) – Key TOCOM rubber futures edged lower on Monday as investors continue to fret about the health of the global economy after the release of disappointing Chinese data last week.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery was down 1.9 yen, or 0.9 percent, at 217 yen per kilogram as of 0110 GMT. The benchmark contract earlier fell to as low as 216.7 yen.
* China’s imports of key commodities, such as iron ore and copper, held up better than expected in July, but weak trade figures and a nine-month low in crude oil imports painted a picture of a slowing economy.
* Japan’s economic expansion slowed more than expected in the second quarter, data showed on Monday, as a rebound in consumer spending starts to lose momentum and Europe’s debt crisis weighs on global demand.
MARKET NEWS
* U.S. crude futures rose in early Asian trade on Monday on renewed fears of supply disruption as Israel’s latest comments on stopping Iran’s disputed nuclear programme stoked tension in the region.
* The currency markets got off to a nondescript start on Monday, with commodity currencies under mild pressure first thing as investors continued to worry about the health of the global economy following last week’s disappointing Chinese data.
* Japan’s Nikkei share average dipped at Monday’s open, as hopes for further stimulus were outweighed by a lack of reasons to buy and tough technical resistance. The Nikkei edged down 0.1 percent to 8,885.83 while the broader Topix was 0.1 percent lower at 746.34.
* The Standard & Poor’s 500 finished slightly higher on Friday to run its streak to six straight sessions, but activity was light and gains were slight as the market enters a seasonally slow period.
DATA EVENTS
* The following data is expected on Monday: (Times in GMT)
- 0001 UK Rics housing survey for July
- 0600 Germany whole price index for July
- 0645 France current account for June
