SINGAPORE: Japanese rubber futures fell on Friday, as oil prices eased and global equities slid due to expectations that the US Federal Reserve would hike interest rates to combat rising inflation. The Osaka Exchange rubber contract for August delivery was down 3.9 yen, or 1.6 %, at 241.6 yen ($2.08) per kg as of 0132 GMT. The benchmark was set for its second straight weekly drop.
Oil prices settled about 2% lower on Thursday after a volatile session, a day after its biggest dive in two years, as Russia pledged to fulfil contractual obligations and some traders said supply disruption concerns were overdone.
Global share markets also slid, as US inflation hit almost 8%, making it almost certain the US Federal Reserve will raise interest rates next week, and the European Central Bank sped up the end of its massive stimulus program.
Japan’s benchmark Nikkei share average was down 2.0% on Friday. Japan’s household spending rose in January but the business mood sank in the first quarter as rising raw material costs squeezed corporate margins, leaving the country’s resource-poor economy facing a hard grind ahead.
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