Japan rubber futures ease on firmer yen

TOKYO: Japanese rubber futures eased on Thursday, snapping a four-day rally as a stronger yen against the US dollar prompted some selling, while traders booked profits after the US Federal Reserve cut interest rates as expected.

The Osaka Exchange (OSE) rubber contract for May delivery finished 0.8 yen, or 0.2 percent, lower at 329.6 yen (USD2.1) per kg, reversing course after earlier gains.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 5 yuan to settle at 15,185 yuan (USD2,151) per metric ton.

The yen was at 155.98 against the US dollar, compared with 156.69 yen in late Wednesday Asia trade.

A stronger currency makes yen-denominated assets less affordable to overseas buyers.

Also weighing on the rubber market, Japan’s Nikkei share average fell 0.9 percent on Thursday.

A sharply divided Fed cut interest rates on Wednesday but signalled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of a job market showing signs of softening, inflation that “remains somewhat elevated” and an economy it sees picking up steam next year.

A Fed rate cut boosted hopes for stronger rubber demand by supporting consumption.

The World Bank on Thursday said China’s economy held firm in the third quarter of 2025, bringing year-to-date GDP growth to 5.2 percent year on year.

Oil prices slid on Thursday as investors shifted focus back to Russia-Ukraine peace talks and monitored potential fallout from a US seizure of a sanctioned tanker off the coast of Venezuela.

The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 172.3 US cents per kg, down 0.1 percent.

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