SINGAPORE: Japanese rubber futures edged lower on Monday, as losses in the Shanghai market, domestic equities and crude prices weighed on sentiment, although a weaker yen capped further decline.
The Osaka Exchange rubber contract for July delivery was down 0.9 yen, or 0.4%, at 223.6 yen ($1.70) per kg as of 0210 GMT. The benchmark contract hit its lowest level since Jan. 17 at 222.8 yen earlier in the session.
The rubber contract on the Shanghai futures exchange for May delivery was down 10 yuan, or 0.1%, at 12,610 yuan ($1,847.75) per tonne. Japan’s benchmark Nikkei share average opened down 0.44%.
Oil prices eased on Monday after rising 2% in the previous session as investors shrugged off the impact of Russian output cuts, instead focusing on short-term demand concerns stemming from refinery maintenance in Asia and the United States.
The natural rubber market is hindered by weaker oil prices as manufacturers are disincentivised from shifting away from synthetic rubber that is derived from oil, driving natural rubber prices lower. The US currency gained 0.18% to 131.63 yen, although well within the range of the past week of 129.80 to 132.90.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies. Asian shares slipped on Monday as investors hunkered down for US inflation and retail sales data that could jolt the outlook for interest rates globally, while tempering or accelerating the recent spike in bond yields.
Comments
Comments are closed.