SINGAPORE, Oct 21 (Reuters) –
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Japanese rubber futures dropped on Monday, weighed down by concerns over top consumer China’s economic recovery and lower synthetic rubber prices, although fresh stimulus from Beijing limited losses.
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The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed down 5.5 yen, or 1.39%, at 389.0 yen ($2.60) per kg.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 ticked up 10 yuan, or 0.06%, to finish at 18,170 yuan ($2,554.26) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 fell 315 yuan, or 2.03%, to 15,205 yuan ($2,137.46) per metric ton.
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China cut benchmark lending rates as anticipated at the monthly fixing, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
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Data on Friday showed China’s economic growth was slightly better than expected in the third quarter, although property investment fell more than 10% in the first nine months of the year.
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The market is in consolidation after recent high price volatility, with potential for movement in either direction, Japan Exchange Group said on the OSE contract.
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Weekly trading volume of the SHFE contract dropped, reflecting uncertainty in direction, although market sentiment remains stable, said Japan Exchange Group.
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The yen JPY=EBS was down nearly 0.2% at 149.26 per dollar, as the U.S. currency looked set to extend its gains in markets counting down to the U.S. presidential election in two weeks. 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 194.9 U.S. cents per kg, down 1.9%.
($1 = 149.5100 yen)
($1 = 7.1136 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
