SINGAPORE: Japanese rubber futures rebounded on Wednesday, snapping a three-day decline, as optimism on reduced import duties on Thai tyres and strong US labour data overshadowed concerns of soft manufacturing activity and stalling electric vehicle demand.
The Osaka Exchange (OSE) rubber contract for July delivery closed up 3.7 yen, or 1.32%, at 285 yen ($1.93) per kg.
The contract rose 11.11% in January, the highest monthly gain since February 2021.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 40 yuan to end at 13,525 yuan ($1,883.21) per metric ton.
The US Department of Commerce has lowered anti-dumping duties on passenger vehicle and light truck tyres from Thailand, benefiting about ten Thailand-based tyre producers, according to a Federal Register report on Monday.
US job openings unexpectedly rose in December, while resignations fell to 3.392 million, marking the lowest level since January 2021.
The Conference Board said on Tuesday that its consumer confidence index rose to 114.8 this month, the highest reading since December 2021.
China’s manufacturing activity contracted for the fourth straight month in January, an official factory survey showed on Wednesday, suggesting the sprawling sector was struggling to regain momentum.
Japan’s factory output in December rose 1.8% from the previous month, falling short of the median market forecast for a 2.4% rise, data showed on Wednesday.
Investment in capacity and technology development has outrun actual electric vehicle (EV) demand. “Global EV momentum is stalling. The market is over-supplied vs demand,” Morgan Stanley said in a recent research note.
Japan’s benchmark Nikkei average closed 0.61% higher.
Source: Brecorder
