SINGAPORE: Japanese rubber futures declined on Thursday, hurt by soft Asian manufacturing data and lower vehicle production.
The Osaka Exchange’s (OSE) rubber contract for July delivery closed down 1.4 yen or 0.49%, at 283.6 yen ($1.93) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 140 yuan to finish at 13,385 yuan ($1,863.89) per metric ton. Asia’s factories delivered a largely patchy performance in January, surveys showed on Thursday.
China’s private-sector Caixin/S&P Global manufacturing purchasing managers’ index stayed at 50.8 in January, unchanged from December. The reading contrasted with an official survey that showed manufacturing activity contracted for the fourth straight month.
A production halt at automaker Daihatsu over rigged collision-safety tests is expected to weigh on Japan’s January production forecast, a trade official said.
Toyota Motor has decided to keep the six production lines at four of its Japanese plants suspended through Feb. 5 due to its supplier’s engine certification issue.
Meanwhile, India’s top carmaker by sales Maruti Suzuki is facing some logistical challenges due to traffic disruption in the Red Sea, a company executive said on Wednesday.
EU antitrust regulators on Tuesday raided a number of tyre makers in several EU countries on concerns that they may be coordinating prices as part of a cartel.
The Federal Reserve’s decision to hold rates at 5.25-5.5% on Wednesday was no surprise, but it emphasised that rates would not be cut until it had more confidence that inflation was truly beaten.
Japan’s Nikkei share average closed 0.76% lower. The Japanese yen was unchanged at 146.90 against the dollar. The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 152.40 US cents per kg, down 0.33%.
Source: Brecorder
