SINGAPORE: Japanese rubber futures edged lower on Wednesday to snap a three-session rally, tracking losses in the Shanghai market and domestic equities, while expectations of a contraction in domestic manufacturing activity added pressure.
The Osaka Exchange (OSE) rubber contract for August delivery was down 1.4 yen, or 0.6%, at 224.9 yen ($1.67) per kg as of 0205 GMT. The OSE’s February contract expired at 212.0 yen per kg on Tuesday.
The OSE will be closed on Thursday for a public holiday in Japan. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was down 50 yuan, or 0.4%, at 12,550 yuan ($1,821) per tonne.
Japan’s benchmark Nikkei share average opened 0.75% lower. Japan’s manufacturing activity contracted at the fastest pace in 30 months in February, a business survey showed on Tuesday, in a worrying sign for the world’s third-largest economy, which is facing weakening demand and struggling to tame cost pressures.
The Japanese yen was last up 0.2% against the dollar at 134.70. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
Comments
Comments are closed for this article.