SINGAPORE: Japanese rubber futures rose on Monday, boosted by a weaker yen, but gains were capped by softer global oil prices and decelerating growth in China.
The Osaka Exchange (OSE) rubber contract for April delivery was up 3 yen, or 0.8%, at 377 yen($2.45) per kg as of 0150 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 205 yuan, or 1.14%, to 17,830 yuan($2,499.23) per metric ton.
China’s industrial profits plunged in September as recent government data pointed to increased deflationary pressures, softer export growth and subdued loan demand, raising red flags over the economic recovery.
Related Post
The most active November butadiene rubber contract on the SHFE rose 10 yuan, or 0.07%, to 15,070 yuan($2,112.36) per metric ton.
The yen sank as low as 153.34 per U.S. dollar for the first time since July 31.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Japanese rubber futures lower
Japanese stocks rose strongly as the yen touched a three-month low after Prime Minister Shigeru Ishiba’s coalition lost its parliamentary majority in Sunday’s election, raising uncertainties over the path for policy and the economy.
The Nikkei share average rose 1.5% to 38,492.25 as of 0039 GMT. It was earlier up nearly 2% after opening 0.4% lower.
Oil prices tumbled more than $3 a barrel after Israel’s retaliatory strike on Iran over the weekend.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made
from crude oil.
rubber producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash floods from Oct. 27-Nov. 2.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 194.9 U.S. cents per kg, up 0.2%.
Source: Brecorder
