SINGAPORE: Japanese rubber futures fell on Friday, tracking losses in the Shanghai market and weaker domestic equities amid continued concerns over a global economic slowdown.
The Osaka Exchange (OSE) rubber contract for June delivery was down 2.0 yen, or 0.9%, at 219.8 yen ($1.64) per kg as of 0200 GMT. For the week so far, the benchmark OSE contract has gained about 0.8%. The OSE will be closed on Monday for a public holiday in Japan.
The rubber contract on the Shanghai futures exchange for May delivery was down 235 yuan, or 1.8%, at 12,755 yuan ($1,857) per tonne. Japan’s benchmark Nikkei share average opened down 0.31%.
Rubber demand sentiment has been mixed over the past month after China relaxed its strict Covid -19 curbs, which was met with a fresh wave of new infections, limiting industrial activity and consumption. China defended on Thursday its handling of its raging Covid-19 outbreak after US President Joe Biden voiced concern and the World Health Organisation (WHO) said Beijing was under-reporting virus deaths.
Tesla Inc delivered 55,796 China-made electric vehicles in December, the lowest level in five months. Japan’s real wages in November fell 3.8% from a year earlier, their fastest rate in more than eight years, dealing a blow to policymakers’ hopes of achieving faster economic growth led by higher wages.
Asian equities gained, while the dollar hovered near a one-month high as investors braced for crucial US jobs data that should provide clues on how aggressive the Federal Reserve will be in tightening policy.
The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 132.0 US cents per kg, down 1.2%.
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