SINGAPORE: Japanese rubber futures dipped on Monday, tracking weaker domestic equities, while a stronger yen and lacklustre Shanghai market also added pressure.
The Osaka Exchange (OSE) rubber contract for August delivery was down 2.9 yen, or 1.3%, at 216.3 yen ($1.61) per kg, as of 0204 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was down 175 yuan, or 1.45%, at 11,920 yuan ($1,723.22) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange were flat from a week earlier, the exchange said on Friday. Japan’s benchmark Nikkei share average opened down 0.92%.
The Japanese yen strengthened 0.24% to 134.66 per dollar, as of 0206 GMT. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
Oil prices slipped in Monday Asian morning trading as concerns about possible interest rate hikes continue to rattle investors, though Chinese demand recovery and a weaker dollar provided some support. Lower oil prices incentivise manufacturers to shift to synthetic rubber derived from oil, hindering the natural rubber market.
US stock futures rallied in Asian trade on Monday as authorities announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB), while investors wagered future hikes in US rates would now be less aggressive.
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