SINGAPORE: Japanese rubber futures opened flat on Monday, as losses from shrinking factory activity in China and Japan were offset by a softer yen and tighter inventories.
The Osaka Exchange (OSE) rubber contract for December delivery was unchanged at 206.0 yen ($1.43) per kg as of 0201 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery rallied 75 yuan, or 0.6%, at 12,100 yuan ($1,671.69) per metric ton.
Japan’s benchmark Nikkei average opened up 0.99%. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 1.6 % from last release on June 16, the exchange said last Friday. China’s factory activity growth slowed in June, a private sector survey showed on Monday, concurring with the official survey, which showed factory activity extending declines for a third straight month in June.
Similarly, Japan’s factory activity contracted in June after expanding for the first time in 7 months in May, a private survey showed on Monday, dragged down by weak orders for cyclical goods amid a global economic slowdown.
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