SINGAPORE: Japanese rubber futures dipped on Tuesday, weighed down by concerns over global economic slowdown, while trading remained thin due to the week-long holiday in top buyer China.
Osaka Exchange’s rubber contract for March delivery finished down 0.5 yen, or 0.2%, at 228.5 yen ($1.58) per kg.
Japan’s benchmark Nikkei share average closed 2.96% higher, its biggest daily gain since March 23. “Marginal oscillations between price increases and decreases in the TOCOM are to be anticipated this week, seeing as a significant portion of market players are on holiday,” said a Singapore-based trader.
Chinese financial markets are closed from Oct. 1 until Oct. 7 for the Golden Week national holiday. Trading will resume on Oct. 10. Rubber output in top exporter Thailand might be affected by forecasts for continued heavy rains and flood warnings across the country. Core consumer prices in Japan’s capital, a leading indicator of nationwide inflation, rose 2.8% in September from a year earlier, exceeding the central bank’s 2% target for a fourth straight month and marking the biggest gain since 2014.
Global factory output mostly weakened in September as slowing demand added to the pain from persistent cost pressures and tighter monetary policy, surveys showed on Monday, diminishing economic recovery prospects.
Asian stocks bounced on Tuesday after Britain scrapped bits of a controversial tax cut plan, tentatively improving global market sentiment and rallying bonds and the pound.