Japanese rubber futures lower

SINGAPORE: Japanese rubber futures fell on Tuesday as a firmer yen and weak China data soured sentiment. The Osaka Exchange (OSE) rubber contract for May delivery lost 3.5 yen, or 1.06 percent, to 327 yen (USD2.11) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dipped 55 yuan, or 0.36 percent, to 15,170 yuan (USD2,154.10) per metric ton. The most-active February butadiene rubber contract on the SHFE rose 120 yuan, or 1.11percent, to 10,930 yuan per metric ton. The yen shot up 0.3 percent to 154.735 against the US dollar, as traders braced for an expected interest rate hike by the Bank of Japan on Friday. A stronger currency makes yen-denominated assets less affordable for overseas buyers.

Weak economic data from top consumer China continued to weigh, with risk appetite curbed by data that signalled China’s economy had stalled in November.

A sharp build in official SHFE rubber stocks last week offset much of mid-November’s seasonal decline, Japan Exchange Group said in a report on Monday. “Rubber futures trading volumes are expected to taper off as year-end holidays approach, keeping market sentiment steady but cautious,” the exchange added.

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