SINGAPORE, Sept 4 (Reuters) –
- Japanese rubber futures extended declines on Wednesday, as weak Chinese data raised concerns about the top consumer’s economic recovery, while softer oil prices hit sentiment.
- The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was down 2.3 yen, or 0.64%, at 356.7 yen ($2.45) per kg as of 0205 GMT.
- The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 155 yuan, or 0.95%, to 16,150 yuan ($2,269.66) per metric ton.
- Growth in China’s services sector activity slowed in August despite the summer travel peak, prompting some firms to cut staff amid concerns about rising costs, a private-sector survey showed.
- With factory owners trimming product prices to stay competitive, consumers tightening their belts and the ailing property sector failing to see meaningful rebound, the economy faces increasing challenges in tandem with external geopolitical uncertainties.
- Oil prices extended losses after Tuesday’s more than 4% plunge, on expectations the political dispute that has halted Libyan exports may be resolved and concerns over lower global demand growth. O/R
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- The safe-haven yen was last about 0.3% stronger at 145.02 per dollar JPY=EBS, after a 1% rally overnight as traders ran for cover following the worst sell-off in almost a month on Wall Street. USD/
- The U.S. market was hit by soft manufacturing data, which fanned worries about a hard landing for the world’s biggest economy, ahead of crucial monthly payrolls data on Friday.
- A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
- The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 175.6 U.S. cents per kg, down 0.7%.
($1 = 145.3900 yen)
($1 = 7.1156 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
Source:
Reuters
