TOKYO: Japanese rubber futures fell almost 3 percent, dropping from a near three-week high hit last week, after data showed that Japan’s factory activity extended declines in September, underscoring the COVID-19 pandemic’s impact on the economy.
Osaka Exchange’s rubber contract for February delivery finished down 5 yen, or 2.7% at 181 yen per kg. It was the biggest daily percentage decline since early September.
The contract closed at its highest since Sept. 2 last Friday. Monday and Tuesday were public holidays in Japan.
The rubber contract on the Shanghai futures exchange for January delivery fell 0.8% to finish at 12,320 yuan per tonne.
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The drop in manufacturing activity in the world’s third-largest economy came largely as a result of output contracting at a faster pace for the first time in four months.