Tokyo Futures Inch Up, But Uncertain Demand Limits Gains

Key Tokyo rubber futures inched higher early on Tuesday (May 24) after heavy selling the previous day, but weaker oil prices and further signs of a slowdown in China, the world's top rubber consumer, limited gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for October delivery was up 0.6 yen, or 0.2 percent, at 368.5 yen as of 0030GMT.
The most active Shanghai rubber contract for September delivery fell 655 yuan on Monday (May 23) to settle at 30,830 yuan ($4,748.128) per tonne.
The dollar was flat against the Japanese currency, but spiked to a two-month high against the euro as economic worries in Greece, Spain and Italy fanned renewed risk aversion.
U.S. crude oil fell by $1.05 to $96.65 per barrel in early Asian trade on Tuesday (May 24) on a stronger dollar due to renewed concerns over euro zone debt.
MARKET NEWS
South Korea's Hyundai Motor has stopped production of diesel engines at its Ulsan plant due to a protracted strike from component supplier Yoosung Enterprise, Yonhap news reported on Tuesday (May 24).
Toyota Motor Corp and cloud computing company Salesforce.com Inc will build a social network service that will enable owners to become "friends" with their cars and get tweet-like reminders for maintenance checks and other notices.
U.S. drivers enjoyed the biggest one-week drop in gasoline prices since December 2008, as cheaper crude oil cut costs at the pump, the Energy Department said on Monday.
Japan's Nikkei share average opened down 0.58 percent at 9,406.04 on Tuesday (May 24) after U.S. shares closed at their lowest level in a month on worries over recent weakness in global manufacturing.
(Reuters, May 24, 2011)