SINGAPORE, Oct 30 (Reuters) –
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Japanese rubber futures fell for the sixth straight session on Wednesday, to hit their lowest in a month, as weaker Chinese manufacturing data and trade tensions surrounding Beijing outweighed prospects of a new outsized fiscal stimulus package from the top consumer.
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The April Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed down 9 yen, or 2.47%, at 356.0 yen ($2.32) per kg.
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The contract hit an intraday low of 355.3 yen, its weakest level since Sept. 24.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 dipped 40 yuan, or 0.22%, finishing at 17,845 yuan ($2,502.88) per metric ton.
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China’s factory activity likely contracted in October for a sixth month, a Reuters poll showed on Tuesday, but by the tiniest of margins, backing officials’ optimism that recent fresh stimulus will get the world’s second-largest economy back on track.
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Beijing is considering approving, next week, the issuance of over 10 trillion yuan ($1.4 trillion) in extra debt in the next few years to revive its fragile economy.
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The planned total amount equates to over 8% of China’s economic output.
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The European Union has decided to increase tariffs on Chinese-built electric vehicles to as much as 45.3% at the end of its highest-profileinvestigation that has divided Europe and prompted retaliation from Beijing.
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Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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The dollar-yen pair JPY=EBS slipped 0.08% to 153.26, retreating from a three-month peak on Tuesday, as U.S. bond yields rose and the yen remained pressured by political uncertainty since Japan’s ruling coalition lost its majority in parliament last weekend. USD/
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A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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The front-month November rubber contract on the SingaporeExchange’s SICOM platform STFc1 last traded at 194.2 U.S. cents per kg, up 0.4%.
($1 = 153.2500 yen)
($1 = 7.1298 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich and Savio D’Souza
