SINGAPORE: Japanese rubber futures inched higher on Friday, tracking gains in the Shanghai market over hopes of a demand revival in top buyer China, although disappointing domestic factory activity weighed on sentiment and capped gains.
Osaka Exchange’s rubber contract for May delivery finished 0.4 yen, or 0.2%, higher at 230.5 yen ($1.68) per kg, off an earlier low. The benchmark OSE contract has gained about 0.2% for the week. The rubber contract on the Shanghai futures exchange for January delivery rose 100 yuan to finish at 13,090 yuan ($1,880) per tonne. Japan’s benchmark Nikkei share average closed down 1.87%.
Japan’s manufacturing activity shrank at the fastest pace in more than two years in December on soft demand and persistent cost pressures, a corporate survey showed on Friday.
Hopes have grown in recent weeks that rubber demand in top buyer China would improve as the country relaxes Covid-19 restrictions that have limited industrial activity and consumption. China’s economy is expected to pick up, but “arduous efforts” are needed to sustain the recovery in growth due to an adverse external environment and the global economy’s loss of momentum, the country’s top state planner said on Friday.
Mainland China’s Health Commission reported 2,157 new symptomatic coronavirus cases for Dec. 15, compared with 2,000 new cases a day earlier.
China’s BYD Co will launch a new “professional and personal” electric car brand in 2023, a senior executive said on Thursday as the automaker expands its range following a year of strong sales.
The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 137.7 US cents per kg, up 1%.
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