SINGAPORE, Oct 16 (Reuters) –
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Japanese rubber futures lost ground on Wednesday, weighed down by concerns of slowing economicgrowth in top consumer China, although a softer yen lent some support to prices.
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The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed down 7.6 yen, or 1.93%, at 385.5 yen ($2.58) per kg.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 515 yuan, or 2.82%, to 17,760 yuan ($2,494.94) per metric ton.
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The contract slid more than 3% earlier in the session.
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Persistent concerns over China’sweak economic recovery and disappointment around Beijing’sfiscal stimulus announcements are keeping sentiment “sharply down” in Chinese stocks, the widerAsian equity markets and general commodities, said Jom Jacob, chief analyst at Indian analysis firm WhatNext Rubber.
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These concerns are prevailing over natural rubber markets despite supply remaining weak, Jacob added.
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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 pressure on policymakers as they consider more stimulus measures.
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Last week, China’s finance minister pledged to “significantly increase” debt to revive growth, but left investors guessing on the size of the stimulus package.
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Beijing said it will hold a press conference on Thursday to discuss promoting the “steady and healthy” development of the property sector, rekindling hopes of further policy easing to underpin a recovery in the housing market and a broad economic revival.
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The dollar added 0.1% to 149.345 yen JPY=EBS, not far from Monday’s high of 149.98 yen, the strongest level since Aug. 1. USD/
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A softer 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 195.6 U.S. cents per kg, down 3.2%.
($1 = 149.2400 yen)
($1 = 7.1184 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu and Sonia Cheema
