SINGAPORE, Sept 20 (Reuters) –
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Japanese rubber futures fell on Friday but were headed for a weekly rise, as a tepid Chinese economic outlook clouded the top consumer’s demand prospects, althuogh hopes of fresh monetary stimulus boosted sentiment.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was down 3.9 yen, or 1.04%, at 369.5 yen ($2.59) per kg as of 0205 GMT.
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The contract has gained 2.95% so far this week.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 10 yuan, or 0.06%, to 17,865 yuan ($2,531.53) per metric ton.
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China unexpectedly left lending rates unchanged at the monthly fixing.
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Analysts still expect imminent easing by Beijing, following the Fed’s outsized rate cut earlier this week.
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A sharper focus on boosting demand to fight persistent deflationary pressures is expected, as August economic data surprised to the downside and raised the urgency to roll out more stimulus measures to prop up the economy.
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The yen remained under pressure on Friday as investors wagered the Bank of Japan would wrap up a policy meeting sounding cautious on further tightening. USD/
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The dollar was up 1.4% for the week at 142.84 yen JPY=EBS, though off an overnight high of 143.95.
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A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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Oil prices, which were little changed in early Asian trade, were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles. O/R
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Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
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The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 195.4 U.S. cents per kg, down 0.06%.
($1 = 142.5200 yen)
($1 = 7.0570 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
