SINGAPORE: Japanese rubber futures tracked the Shanghai market lower on Tuesday amid weakness in broader China commodities, although losses were capped by stronger domestic equities.
The Osaka Exchange’s rubber contract for March delivery finished 0.7 yen, or 0.3%, lower at 229.4 yen ($1.54) per kg.
The rubber contract on the Shanghai futures exchange for January delivery fell 160 yuan to finish at 12,700 yuan ($1,766) per tonne.
Japan’s benchmark Nikkei share average closed up 1.42%.
“While it was anticipated that prices would be ranging between gains and losses this week, SHFE prices have fallen more than OSE’s, likely due to the weakness in Chinese commodities today,” said a Singapore-based trader.
“Further, we will also have to wait for more minutes from China’s Party Congress for any further direction on their zero-COVID policies.” * Concerns have grown over the past few months about slowing rubber demand in China as the country struggles with a property crisis, heat waves disrupting production, and extended lockdowns hitting industrial activity and consumption.
Rubber output in top exporter Thailand might be affected by forecasts for continued heavy rain and flood warnings across the country during the monsoon season.
China delayed the release of economic indicators scheduled for publication this week, including its third-quarter gross domestic product data due on Tuesday, according to an updated calendar on the statistics bureau’s website.
Asian stocks rose as the dramatic U-turn in British fiscal policy brightened investor sentiment, while sterling flirted with two-weeks high on hopes the Bank of England may further delay plans for quantitative tightening.
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