SINGAPORE: Japanese rubber futures continued their downward trend on Wednesday, pressured by a firmer yen and a cautious outlook in the auto sector.
The Osaka Exchange (OSE) rubber contract for February delivery was down 2.5 yen, or 0.79 percent, at 315.5 yen (USD2.15) per kg.
The rubber contract on the Shanghai Futures Exchange
(SHFE) for January delivery dipped 120 yuan, or 0.75 percent, to 15,880 yuan (USD2,233.82) per metric ton.
The most-active October butadiene rubber contract on the SHFE fell 80 yuan, or 0.69 percent, to 11,590 yuan per metric ton.
The yen firmed to 146.49 per dollar ahead of the Bank of Japan policy meeting on Friday.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
Nissan Motor is set to shut its design studios in the US and Brazil as part of its plan to restore profitability, which includes measures such as cutting global production capacity by 1 million vehicles and reducing manufacturing sites.
More broadly, Japan recorded its fourth consecutive monthly export drop in August, as elevated US tariffs impacted the automotive sector, leading automakers to reduce export prices to maintain sales levels in the United States.
Automobile sales could influence the intensity of automobile manufacturing, which involves rubber-made tyres.
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