Tokyo Futures Ease, Trade Narrowly As Oil Price Eyed

Key Tokyo rubber futures eased on Wednesday (May 18) but remained in a narrow range, with a weaker yen and firmer oil prices lending support while expected supplies from producing countries capped the market's upside.
FUNDAMENTALS
Key Tokyo rubber futures rose 3 percent on Tuesday (May 17),supported by a weaker yen and strength in the Shanghai rubber futures market.
The benchmark TOCOM rubber futures for October delivery settled up 11 yen or 3 percent at 381.4 yen per kg.
The most active Shanghai rubber futures contract for September delivery closed up 365 yuan or 1.2 percent at 31,570 yuan ($4,850.415) per tonne on Tuesday (May 17). Volume stood at 1.4 million lots.
Oil prices rose on Wednesday (May 18) after a report from industry group American Petroleum Institute showed gasoline and total distillate stocks fell last week.
The euro firmed against the dollar on Wednesday (May 18), boosted by successful bill auctions in Spain and Greece, but remained vulnerable to the region's debt crisis. The yen fell broadly.
MARKET NEWS
Japanese corporate pessimism eased in May in a sign business sentiment may have bottomed out two months after the March 11 earthquake, a Reuters poll showed, but companies remain cautious over the outlook due to the ongoing nuclear crisis and power supply problems.
Almost 200,000 U.S. customers looking to buy new vehicles are "up for grabs" because of parts shortages caused by the March 11 earthquake and tsunami in Japan, according to a new report.
U.S. factory output slipped for the first time in 10 months in April as a shortage of parts from Japan crimped activity and home building slumped, showing the economy got off to a weak start in the second quarter.
Saudi Basic Industries Corp (SABIC), the world's largest chemicals producer by market value, said on Tuesday it is planning a $1 billion-plus facility in China with China Petroleum & Chemical Corp (Sinopec) to tap the country's robust demand for plastics.
The Nikkei average opened up 0.37 percent on Wednesday (May 18).
The Dow and the S&P 500 fell for a third day on Tuesday after disappointing figures from Wal-Mart and Hewlett-Packard, although a late rebound suggested investors may be looking for a short-term bounce.
(Reuters, May 18, 2011)