Tokyo rubber futures rise on firmer Nikkei; China data eyed

Benchmark TOCOM rubber futures edged higher on Tuesday, helped by a firmer Tokyo stock market, but trade was thin as investors awaited China manufacturing data due later in the day.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for May delivery rose 1.5 yen, or 0.9 percent, to 163.6 yen ($1.33) per kg by 0042 GMT, after booking its first monthly gain in six months. RUB/T

Activity in China’s manufacturing sector likely shrunk for the fourth month in November, a Reuters poll showed, which would underline persistent sluggishness in the world’s second-largest economy.

The IMF announced on Monday it had decided to include China’s yuan, or renminbi, in its benchmark currency basket, a move that should bolster the yuan’s political clout and standing as a global currency, analysts said. The world’s two biggest central banks are expected to move decisively in opposing directions this week, with the ECB almost certain to ease policy on Thursday and a U.S.jobs report likely to seal the case for a Fed rate hike in December.

MARKET NEWS

Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.9 percent in Tuesday trade, after Wall Street ended lower ahead of a crucial payroll report Friday. The U.S. dollar was quoted at around 123.23 yen JPY= early on Tuesday.The dollar rose 2 percent against the yen in November.

Crude oil prices held at low levels in early trading in Asia on Tuesday as traders bet on continued high production from the Organization of the Petroleum Exporting Countries (OPEC) ahead of its meeting later this week.

DATA/EVENTS (GMT)

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

0100 China NBS Non-mfg PMI Nov

0100 China NBS Manufacturing PMI Nov

0145 China Caixin Mfg PMI Final Nov

1445 U.S. Markit Mfg PMI Nov

1500 U.S. Construction spending Oct

1500 U.S. ISM Manufacturing PMI Nov

1830 U.S. Total vehicle sales Nov ($1 = 123.2300 yen)