SINGAPORE, June 27 (Reuters) –
- Japanese rubber futures rose on Thursday on the back of a weaker yen, although gains were capped by lower oil prices.
- The Osaka Exchange (OSE) rubber contract for December delivery JRUc6, 0#2JRU: was up 1.1 yen, or 0.33%, at 332.6 yen ($2.07) per kg as of 0704 GMT.
- The September rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 125 yuan to 14,925 yuan ($2,053.35) per metric ton.
- The yen languished near a 38-year low and struggled on the weaker side of 160 per dollar, keeping markets on alert for any signs of intervention from Japanese authorities to prop up the currency. USD/
- Japanese authorities will take necessary actions on currencies, Finance Minister Shunichi Suzuki said, signalling readiness to intervene in the exchange-rate market after the yen’s slide.
- A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers holding other currencies.
- Oil prices dipped as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world’s top oil consumer, though declines were capped by worries a potential expansion of the Gaza war may disrupt Middle East supplies.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.
- Top consumer China’s industrial profits rose at a sharply slower pace in May, official data showed, underlining the struggles faced by the world’s second-largest economy as weak domestic demand crimps overall growth.
- China’s manufacturing activity likely contracted for a second month in June, a Reuters poll showed, keeping alive calls for fresh stimulus after a string of recent indicators showed the economy struggling to get back on its feet.
- The front-month July rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 165.2 U.S. cents per kg, down 2.5%.
($1 = 160.4500 yen)
($1 = 7.2686 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
Source:
Reuters
