TOKYO: Japanese rubber futures fell on Wednesday, as data showed surprising weakness in US business activity, raising fears of slower global demand for the material.
The Osaka Exchange (OSE) rubber contract for November delivery was down 1.5 yen, or 0.5%, at 329.3 yen ($2.12) per kg as of 0246 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery was up 50 yuan, or 0.3%, at 15,030 yuan ($2,075) per metric ton.
The risk that the US economy might be softening more than expected was brought to the fore again after Tuesday’s data showed job openings fell more than forecast in April to the lowest in more than three years.
Japan’s benchmark Nikkei average was down 0.8% in early trade on Wednesday.
Oil prices extended losses slightly from the previous session after an industry report showed builds in US crude and fuel stockpiles, adding to concerns around demand growth.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 172.3 US cents per kg, down 0.4%.
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