SINGAPORE: Japanese rubber futures tumbled on Monday, tracking losses in the Shanghai market, as fresh Covid-19 curbs in China following a rapid rise in cases dashed last week’s hopes for an easing in restrictions and dented demand sentiment.
The Osaka Exchange rubber contract for April delivery was down 3.7 yen, or 1.7%, at 213.5 yen ($1.52) per kg as of 0200 GMT. The rubber contract on the Shanghai futures exchange for January delivery was down 450 yuan, or 3.5%, at 12,325 yuan ($1,720) per tonne. Japan’s benchmark Nikkei share average opened up 0.29%. Market sentiment over rubber demand in top buyer China has been mixed as the country struggles with rising Covid-19 cases and the prospect of new lockdown measures, although authorities have called for the move towards easing curbs.
Beijing’s most populous district urged residents to stay at home on Monday, extending a request from the weekend as the city’s Covid-19 case numbers rose, with many businesses shut and schools in the area shifting classes online.
Local authorities in the Baiyun District of the southern Chinese city of Guangzhou locked down the area for five days from Nov. 21 to Nov. 25 as Covid-19 cases continue to mount.
Mainland China’s Health Commission reported 27,095 new coronavirus cases for Nov 20, compared with 24,435 new cases a day earlier. Asian share markets turned hesitant on Monday as investors fretted about the economic fallout from fresh Covid-19 restrictions in China, while bonds and the dollar braced for more updates on US monetary policy.
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