Japanese rubber futures down

SINGAPORE: Japanese rubber futures sank to their lowest since April 14 in early trade on Wednesday, dragged down by weakness in the Shanghai market, while investors appeared to show scant response to positive data from Japan this week.

The Osaka Exchange (OSE) rubber contract for October delivery was down 2.5 yen, or 1.2%, at 206.4 yen ($1.53) per kg, as of 0215 GMT, retreating for a third session. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was down 185 yuan, or 1.5%, at 11,920 yuan ($1,724.51) per tonne, falling for its sixth straight day. Japan’s benchmark Nikkei average retreated from a 33-year peak to open 0.74% lower. Chinese stocks saw their biggest daily percentage fall in a month on Tuesday, as market participants remained worried about the country’s slowing economic recovery, while a weakening yuan and geopolitical risks also kept investor sentiment fragile. Representatives of US President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress as the deadline to raise the government’s $31.4 trillion borrowing limit or risk default ticked closer. Still, business sentiment at big Japanese manufacturers turned positive for the first time this year and service-sector morale hit a five-month high, the Reuters Tankan poll showed, as the economy continued to improve from a COVID-led recession.