SINGAPORE, Oct 3 (Reuters) –
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Japanese rubber futures snapped a seven-session winning streak on Thursday, as weaker global economic data and escalating trade tensions surrounding top consumer China weighed on sentiment, while a softer yen lent some support to the market.
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The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was down 6.2 yen, or 1.5%, at 406.7 yen ($2.77) per kg, as of 0150 GMT.
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The Shanghai Futures Exchange is closed from Oct. 1-7 for China’s National Day holiday. Trading will resume on Tuesday, Oct. 8.
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Japan’s service sector activity expanded for the third straight month in September, but the pace slowed slightly and confidence dipped in a sign of the broader economic strains amid weakness in manufacturing, a private survey showed.
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Globally, factory activity weakened in September as soft demand and economic uncertainty pointed to a tough outlook, surveys showed, keeping policymakers under pressure to shore up fragile growth.
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France, Greece, Italy and Poland will vote on Friday in favour of tariffs of up to 45% on imports of electric vehicles (EVs) made in China, sources said, enough to push through the European Union’s highest profile trade measures, risking potential retaliation from Beijing.
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Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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Many of the United States’ tariffs on China, including 100% duties on EVs, took effect on Sept. 27. The tariff hikes affect some $18 billion worth of imports.
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The dollar rose to a one-month high versus the yen JPY=EBS as robustness in the U.S. jobs market backed the idea that the Federal Reserve does not need to rush to cut interest rates. USD/
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A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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The front-month November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 206.1 U.S. cents per kg, sliding 3.5%.
($1 = 146.8300 yen)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
