Japan futures recover from 11-mth low; demand fears keep sentiment weak

TOKYO: Japanese rubber futures rose on Friday, recovering from a near 11-month low, as investors unwound short positions ahead of the weekend, though the overall sentiment remained weak amid fears over lower global production of automobiles.

Osaka Exchange’s rubber contract for February delivery

finished 2.6 yen, or 1.3%, higher at 202.2 yen ($1.8) per kg, after falling to 197.4 yen, lowest since Oct. 16 last year, earlier in the session.

For the week, the contract fell 4.6%.

Toyota Motor Corp cut its annual production target by 300,000 vehicles, as rising COVID-19 infections slowed output at parts factories in Vietnam and Malaysia, compounding a global shortage of auto chips. The rubber contract on the Shanghai futures exchange for January delivery rose 155 yuan to finish at 13,435 yuan ($2,087) per tonne.