Key Tokyo rubber futures edged higher on Friday, rebounding from a 2 percent drop to a one-week low earlier in the day. A discount in prices of the nearby July futures contract to prices in the physical rubber market lured traders aiming to receive deliveries.
Their buying in the July contract helped push the distant months into positive territory, traders said. But gains were limited, as investors stayed cautious about prospects for a recovery in global demand after grim US jobs data released on Thursday.
The key Tokyo Commodity Exchange rubber contract for December delivery stood at 158.0 yen per kg at 0556 GMT, up 0.1 yen from the previous settlement. It earlier fell as low as 154.6 yen, the lowest for any benchmark since June 25. US crude for August delivery stood at $66.75 a barrel, up 0.03 percent from the previous day.
The nearby July contract was up 2.9 yen at 160.8 yen, having reversed an earlier fall to 156.5 yen. But the key rubber futures contract has struggled to extend gains above 160 yen, and traders said a rally decisively above that level looks difficult unless there are clear signs of a recovery in global demand.
US auto sales fell 28 percent in June from a year earlier, the narrowest decline in nine months, data showed this week. The figures pointed to more stability for the world's biggest economy but fell short of marking a turnaround for the US auto market.
US stocks tumbled on Thursday, driving the S&P 500 down to its third-straight weekly loss, as a steeper-than-expected slide in June non-farm payrolls revived caution about economic recovery prospects. In the currency market, the euro struggled back from its lowest levels in a week on Friday, after a wave of sell orders compounded losses made on bleak US jobs numbers, and it found support as some investors judged it may have slipped too far. Against the yen, the dollar was almost flat at 96 yen.
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