Key Tokyo rubber futures rose on Monday but traded in narrow ranges due to a lack of trading incentives with Chinese markets closed for a holiday while a stronger yen against the dollar kept a lid on gains. The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery rose 2.6 yen, or 0.7 percent, to settle at 392.1 yen per kg.
Weak US jobs data released on Friday raised concerns that the American economy may be in for a long period of soft growth after employers hired the fewest number of workers in eight months in May and the unemployment rate rose to 9.1 percent. Traders said a firmer yen against the dollar, on worries over the US economy in the wake of the jobs report, weighed on rubber prices.
Chinese markets were closed on Monday for a public holiday and will resume trading on Tuesday. The most active Shanghai rubber contract for September delivery rose 915 yuan to closed at 33,365 yuan per tonne on Friday. Volume stood at 785,558 lots. Traders said they were keeping a close eye on Chinese demand, with worries over any signs of a sharper-than-expected economic slowdown as Beijing tries to rein in rapid expansion and rising inflation.
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