SINGAPORE: Japanese rubber futures retreated on Friday, underpinned by lacklustre demand from China and a strong yen, hinting at a probable weekly downturn.
The Osaka Exchange (OSE) rubber contract for December delivery was down 0.5 yen, or 0.2%, at 204.5 yen ($1.49) per kg as of 0158 GMT, shedding gains from a brief bounce in the prior session. The benchmark contract has fallen 0.7% for the week so far.
The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was down 10 yuan, or 0.1%, at 12,400 yuan ($1,735.53) per metric ton. Japan’s benchmark Nikkei average opened up 0.52%.
China’s exports fell the most in three years in June, slumping a worse-than-expected 12.4% year-on-year, as signs mount of stress from the struggling global economy and Chinese policymakers face growing pressure for stimulus measures. The yen touched a near two-month high and last strengthened 0.45% to 137.43 against the dollar, making assets dominated by the currency less affordable for overseas buyers.
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