SINGAPORE, Oct 16 (Reuters) –
-
Japanese rubber futures fell on Wednesday, weighed down by concerns of slower economic growth in top consumer China, although a softer yen lent some support to the market.
-
The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was down 7.1 yen, or 1.81%, at 386 yen ($2.59) per kg, as of 0212 GMT.
-
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 155 yuan, or 0.85%, to 18,120 yuan ($2,545.77) per metric ton.
-
China’s economy is likely to expand 4.8% in 2024, undershooting the government’s target, and growth could cool further to 4.5% in 2025, a Reuters poll showed, maintaining the pressure on policymakers as they consider more stimulus measures.
-
Last week, China’s finance minister pledged to “significantly increase” debt to revive growth, but left investors guessing on the overall size of the stimulus package.
-
China may raise an additional 6 trillion yuan ($850 billion) from special treasury bonds over three years to help bolster a sagging economy through expanded fiscal stimulus, Caixin Global reported on Monday, citing multiple sources with knowledge of the matter.
-
The yen JPY=EBS was steady at 149.155 per dollar. It has weakened 3.6% so far this month as the dovish tilt from the Bank of Japan drags the currency. USD/
-
A softer Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
-
Oil prices rose on Wednesday on continued uncertainty over conflict in the Middle East, after falling as much as $5 this week to the lowest levels since early October on demand concerns. 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 front-month November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 198.3 U.S. cents per kg, down 1.9%.
($1 = 149.0300 yen)
($1 = 7.1177 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
