TOKYO: Japanese rubber futures slid on Wednesday as investors took profits after the recent rally to a near 4-month high, but expectations of faster economic growth and quickening inflation capped losses. Osaka Exchange’s rubber contract for August delivery finished 2.2 yen, or 0.8%, lower at 274.1 yen ($2.6) per kg. The benchmark contract hit its highest since Oct. 30 on Monday.
Japanese financial markets were closed on Tuesday for a national holiday.
“The OSE saw minor adjustments, but the market trend remained strong as signs of inflation were boosting broad commodity prices,” said Jiong Gu, an analyst at Yutaka Shoji Co.
Investors are preparing for a potential spike in inflation with the US Congress poised to pass a $1.9 trillion pandemic-related economic stimulus bill.
The rubber contract on the Shanghai futures exchange for May delivery rose 140 yuan to finish at 16,160 yuan ($2,503) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for March delivery last traded at 176.5 US cents per kg, up 0.7%.
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