Tokyo Futures Fall on Firmer Yen, Growth Worries

Key Tokyo rubber futures fell from one-month highs on Friday (May 27), hurt by a stronger yen and growing concerns over the sovereign debt crisis in Europe and the growth outlook.
FUNDAMENTALS
The benchmark contract on the Tokyo Commodity Exchange for November delivery, which debuted on Thursday (May 26), was down 4.4 yen or 1.1 percent to 387.0 yen per kg as of 0030 GMT.
The contract rose as high as 392.2 yen on Thursday (May 26), the highest for any benchmark since April 28, when firmer oil prices and rising Shanghai rubber futures helped support sentiment.
The most-active Shanghai rubber contract for September delivery rose 395 yuan to close at 32,690 yuan ($5,033.933) per tonne on Thursday (May 26).
Asian physical rubber prices were a little higher on Thursday (May 26), supported by rising futures prices in Tokyo and limited supply in producing countries, dealers said.
The euro remained under pressure on Friday (May 27) on mounting doubts Greece will receive the next round of aid from the International Monetary Fund and on global outlook concerns, while the dollar slid against the yen.
U.S. crude futures stood steady above $100 a barrel on Friday (May 27) after falling more than 1 percent a day earlier on weak U.S. economic data that raised worries about oil demand.
MARKET NEWS
The International Monetary Fund could withhold the next slice of aid to Greece due next month, the head of euro zone finance ministers said on Thursday, spooking markets with the possibility of default.
Unexpectedly weak consumer spending hobbled the U.S. economy in the first quarter and fresh signs of a slowdown in the labour market pointed to an uphill struggle for the recovery.
Honda Motor Co Ltd said its North American assembly plants will not reach full production until August for most vehicles, and it will take even longer for the high-volume Civic compact car.
Global natural rubber production was forecast to rise to 9.936 million tonnes in 2011, lower than a previous estimate of 10.025 million tonnes, due to output revisions in Indonesia and the Philippines, industry group ANRPC said on Thursday (May 26).
The Nikkei stock average edged lower on Friday as optimism over a rise in U.S. stocks was offset by a stronger yen.
U.S. stocks rose for a second day on Thursday (May 26) in a choppy session, with technology and consumer discretionary stocks leading the way after upbeat earnings.