Japanese rubber tracks Shanghai drop

SINGAPORE: Japanese rubber futures fell on Monday, tracking weak Shanghai prices amid concerns over sluggish economic growth in top buyer China, though a weaker yen and stronger oil prices limited losses.

The Osaka Exchange (OSE) rubber contract for April delivery closed down 2 yen, or 0.57%, at 348 yen ($2.25) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed down 225 yuan at 17,410 yuan ($2,404) per metric ton. The most active January butadiene rubber contract on the SHFE closed down 125 yuan at 13,120 yuan ($1,811) per metric ton. China has experienced slowing economic growth and the government has been releasing supportive policies to revive activity. Bank of Japan Governor Kazuo Ueda reiterated that interest rates would continue to rise gradually should the economy develop in line with the central bank’s outlook, but made no mention of when it would be implemented.