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Japanese rubber futures hurt by stronger yen

Japanese rubber futures closed at a three-week low on Friday, weighed by a stronger yen and poor economic data in Japan. The Osaka Exchange (OSE) rubber contract for May delivery fell 6.3 yen or 2.4%, at 256.7 yen ($1.73) per kg.

Japanese rubber futures hurt by stronger yen

Japanese rubber futures closed at a three-week low on Friday, weighed by a stronger yen and poor economic data in Japan. The Osaka Exchange (OSE) rubber contract for May delivery fell 6.3 yen or 2.4%, at 256.7 yen ($1.73) per kg.


For the week, the benchmark contract fell 2.3% in its second consecutive week of decline. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was down 245 yuan or 1.8%, at 13,390 yuan ($1,874.25) per metric ton.


Japan’s factory activity shrank at the fastest pace in nine months in November as sluggish domestic and international demand squeezed firms’ order books, a private-sector survey showed on Friday.


The Japanese yen strengthened 0.06% to 148.09 per dollar, on course for its third straight week of gains, pulling it away from a near 33-year low of 151.92 hit in the middle of November. Japan’s benchmark Nikkei average closed 0.17% lower, posting its first weekly drop in five, as tech shares slumped.


China’s factory activity unexpectedly expanded in November, driven by rising orders, a private survey showed on Friday, but sluggish external demand continues to weigh on manufacturers.


Asian shares edged lower, starting December on a weak note after a recent rally, although anticipated interest rate cuts in Europe and the US should help ease pressure on local currencies and central banks.


The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 144.2 US cents per kg, down 1%.


Read more at Business Recorder

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