SINGAPORE: Japanese rubber futures fell on Wednesday, extending losses to a fourth consecutive session, as data showing domestic factory activity contracting dented demand sentiment, while losses in the Shanghai market added pressure.
The Osaka Exchange rubber contract for July delivery was down 1.4 yen, or 0.6%, at 230.9 yen ($1.78) per kg as of 0224 GMT. The rubber contract on the Shanghai futures exchange for May delivery was down 50 yuan, or 0.4%, at 13,220 yuan ($1,958) per tonne. Japan’s benchmark Nikkei share average opened up 0.57%.
Japan’s factory activity contracted for a third straight month in January, a private survey showed on Wednesday, although manufacturers’ outlook remained upbeat on improved supply and price conditions.
Rubber’s demand sentiment has been positive lately following China’s relaxation of its strict COVID curbs, which had dampened consumption and industrial activity since the start of the pandemic. China’s factory activity shrank more slowly in January after Beijing lifted tough COVID curbs late last year, which helped ease pressure on manufacturers though infections among workers hampered production, a private sector survey showed on Wednesday.
This data was in contrast to a better-than-expected survey on Tuesday, with the official purchasing managers’ index (PMI) showing economic activity swinging back to growth in January, according to China’s National Bureau of Statistics (NBS).
Asia’s stock markets steadied on Wednesday, with signs of a slowdown in US wages bolstering hopes that the Federal Reserve could hint at an end to interest rate hikes at its meeting later in the day.
The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 146.3 US cents per kg, up 0.5%.
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