SINGAPORE: Japanese rubber futures were listless on Thursday on the absence of any further market-moving catalysts after traders priced in lacklustre China data released earlier this week.
The Osaka Exchange (OSE) rubber contract for January delivery held its ground at 196.1 yen ($1.36) per kg, as of 0217 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 25 yuan, or 0.2%, at 12,980 yuan ($1,800.13) per metric ton. Japan’s benchmark Nikkei average opened 0.58% lower. China’s consumer sector fell into deflation and factory-gate prices extended declines in July, as the world’s second-largest economy struggled to revive demand and pressure mounted on Beijing to release more direct policy stimulus. China’s imports and exports fell much faster than expected in July as weaker demand threatens recovery prospects in the economy. China’s passenger vehicle sales fell for a second month in July, as discounts and government support measures failed to persuade consumers wary of buying cars amid a sputtering economy and a prolonged slump in the housing market.
The yen weakened 0.04% against the dollar to 143.79, making yen-dominated assets more affordable for overseas buyers. On supply, rubber output may be affected in top-exporter Thailand. The Meteorological Department warned of heavy rain that could accumulate into flash floods for several regions, including the primary rubber-producing South, between August 12 and 15.
Asian stocks slid as investors reflected on China’s stuttering post-pandemic recovery and escalating geopolitical tensions ahead of a crucial US inflation report that will influence the Federal Reserve’s monetary policy path.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 129.0 US cents per kg, up 0.5%.
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