SINGAPORE: Japanese rubber futures ended little changed on Wednesday, as hopes of economic stimulus in China were offset by poor economic performance in Japan.
Osaka Exchange’s rubber contract for March delivery finished unchanged at 235.3 yen ($1.58) per kg. The rubber contract on the Shanghai futures exchange for January delivery fell 170 yuan, or 1.2%, to finish at 13,810 yuan ($1,890.74) per metric ton.
In top consumer China, stocks edged up on Wednesday, after data showed declines in industrial profits were easing on the back of policy support, with the central bank’s vow to bolster the recovery also helping sentiment.
Earlier today, Japan’s Nikkei share average hit a one-month low, tracking Wall Street’s losses on interest rate jitters, and as investors sold value stocks after recent buying.
Japan’s benchmark Nikkei average closed up 0.18%. Oil prices rose nearly $1 on Wednesday as markets focused on supply tightness heading into winter and a “soft landing” for the US economy. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The yen traded flat at 149.11 against the dollar. A weaker yen makes assets denominated by the currency more affordable for overseas buyers.
Asia stocks traded mixed on Wednesday and benchmark US Treasury yields were near multi-year highs, as investors sour on both stocks and bonds amid worries about the impact of higher-for-longer interest rates.