Japan futures fall 1% on geopolitical concerns, still logs weekly gain

Updates closing prices, adds analyst comment and details

SINGAPORE, May 10 (Reuters) –

Japanese rubber futures fell 1% on Friday as geopolitical concerns surrounding key consumer China weighed on market sentiment but still logged a week-on-week gain.
The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: closed down 3.1 yen, or 1%, at 306.2 yen ($1.97) per kg.
The contract snapped five consecutive weeks of losses to gain 1.16% this week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 fell 55yuan to finishat 14,130 yuan ($1,955.87) per metric ton.
Recent rains in Thailand could “signal the end of wintering” and the normalizing of rubber prices, said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company.
Whilst the supply end normalizes post-wintering, demand remains a major factor, with China being a leading indicator, Miller added.
U.S. President Joe Biden is set to announce new China tariffs as soon as next week targeting strategic sectors including electric vehicles, according to two people familiar with the matter.
China stocks were lower, with blue-chip shares .CSI300 down 0.28% as geopolitical concerns weighed on sentiment following a trade restriction list issued by the Biden administration, apart from the potential new China tariff. MKTS/GLOB
Japan’s consumer spending fell for the 13th straight month in March, creating challenges for policymakers who are seeking to drive stronger real wage growth, a prerequisite for additional central bank rate hikes.
Japan’s weather bureau said on Friday there was a 90% chance that the El Nino phenomenon will dissipate by the end of May, while there was a 60% chance of the La Nina phenomenon occurring in the months up until November.
The front-month rubber contract on the SingaporeExchange’s SICOM platform for June delivery STFc1 last traded at 162.3 U.S. cents per kg, down 0.61%.