TOKYO: Japanese rubber futures ended higher on Tuesday, after hitting their lowest in over 10 months recovering from earlier losses, as investors scooped up bargains following four consecutive days of losses.
Osaka Exchange’s rubber contract for February delivery finished 0.7 yen, or 0.3%, higher at 206.9 yen ($1.9) per kg. It slid to 201.9 yen earlier in the session, the lowest since Oct. 19 last year.
Data showed China’s businesses and the broader economy came under increasing pressure in August as factory activity expanded at a slower pace, while activity in the services sector contracted.
“Growing concerns over slowing economic growth in China have weighed on market sentiment in the past few days and early trade today, but investors started bargain-hunting in late session,” a Tokyo-based dealer said.
“We expect the markets to regain some ground going forward as they look to have been oversold and the prices tend to rebound after summer,” he said.
The rubber contract on the Shanghai futures exchange for January delivery fell 20 yuan to finish at 13,845 yuan ($2,143) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 162.5 US cents per kg, down 0.3%.
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