TOKYO: Japan’s rubber futures gave up early gains to fall on Thursday, as a burst of data out of top buyer China showed growth in its factory and retail sectors continued to falter in August, raising fears over weak demand for the material.
Osaka Exchange’s rubber contract for February delivery finished 2.5 yen lower at 202.4 yen ($1.9) per kg.
Unexpectedly weak data from China on Wednesday reinforced investor bets that global growth is slowing due to COVID-19 and supply chain constraints.
Japan’s exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment, although the pace of growth weakened as COVID-19 hit key Asian supply chains and slowed factory production.
The rubber contract on the Shanghai futures exchange for January delivery rose 60 yuan to finish at 13,830 yuan ($2,146) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 164.6 U.S. cents per kg, up 0.1%.