SINGAPORE: Japanese rubber futures slipped for a third session on Tuesday, as traders adopted a cautious stance and awaited more details on China’s proposed stimulus measures.
Osaka Exchange’s rubber contract for December delivery finished 0.4 yen, or 0.2%, lower at 201.5 yen ($1.42) per kg, hovering around its lowest level in nearly two years. The rubber contract on the Shanghai futures exchange for September delivery rose 70 yuan to finish at 12,140 yuan ($1,700.04) per metric ton. Japan’s benchmark Nikkei average closed 0.06% lower.
China’s top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signalling more stimulus steps.
Pledges from the politburo meeting in China have led speculators to invest in the market, said a Singapore-based trader. The pledge came after measures unveiled on Monday to support private investment were met with lukewarm response.
However, skepticism about the extent of the stimulus and the absence of detailed plans limited optimism, suggesting that any market boost may be brief, the trader said. In a sign of pressure on automakers from a price war in the world’s largest auto market, Toyota Motor’s joint venture (JV) in China said on Monday it has terminated early the contracts of about 1,000 dispatch workers.
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