TOKYO: Japanese rubber futures eased in thin trade on Monday as investors awaited the Bank of Japan’s (BOJ) decision on whether to unwind its ultra-low rates policy during a two-day monetary policy meeting.
The Osaka Exchange (OSE) rubber contract for May delivery finished 2.6 yen, or 1.1%, lower at 235.5 yen ($1.7) per kilogramme, after falling to as low as 233.8 yen, near the previous week’s two-month low of 233.3 yen. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery rose 90 yuan to finish at 13,605 yuan ($1,908) per metric ton, shedding earlier losses.
With consumption showing signs of weakness, it’s widely anticipated that the BOJ will maintain its ultra-loose policy settings. Markets are focusing on any hints Governor Kazuo Ueda might provide during his post-meeting briefing on the timing of a potential exit from negative interest rates.
“The trade was light with no fresh news,” said Jiong Gu, an analyst at Yutaka Trusty Securities Co Ltd., highlighting that investors are monitoring the BOJ policy to gauge the future movement of the yen. “With a rebound in Shanghai futures, the OSE benchmark was consolidating the bottom at around 235-240 yen,” he said.
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