TOKYO, June 10 (Reuters) – Benchmark TOCOM rubber futures slid to a fresh 4-month low on Friday and were on track for a seventh straight weekly loss, weighed down by weaker oil prices and fears about slower demand in China.
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was down 2.0 yen, or 1.3 percent, at 148.8 yen ($1.39) per kg as of 0056 GMT, after touching a low of 148.4 yen, the lowest since Feb.15.
For the week, it was headed for a loss of 5.8 percent, falling for a seventh week in a row, its longest losing streak since February 2014.
Deflationary pressures in China eased further in May, relieving some pressure on cash-strapped companies, but consumer inflation was cooler than expected, suggesting the central bank will keep policy supportive in coming months but be in no hurry to cut interest rates further.
China’s markets are closed on Friday for the Dragon Boat festival holiday.
Oil prices settled down on Thursday, snapping a three-day rally after notching another 2016 high, as a strong dollar sparked profit-taking in crude futures by investors.
The U.S. dollar was quoted around 107.07 yen JPY= early on Friday. The yen, which investors prefer in times of market uncertainty, reached a five-week high of 106.24 yen versus the U.S.dollar the previous day.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Friday trade, after Wall Street retreated overnight as oil prices fell and global growth worries drove investors to safer assets like bonds. .N
The following data is expected on Friday: (Time in GMT)
China Foreign direct investment May
0600 Germany Wholesale price index May
0645 France Industrial output Apr
1400 U.S. Univ of Michigan sentiment index Jun
No exact timing for China data
($1 = 107.0000 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)