SINGAPORE: Japanese rubber futures reversed early gains to dip slightly on Tuesday as investors assessed automotive production halts and Chinese demand worries, while favourable Japanese labour data capped further losses.
The Osaka Exchange (OSE) rubber contract for July delivery closed 0.25% lower, or 0.7 yen, at 281.3 yen ($1.91) per kg. The contract has fallen for three straight sessions so far, the longest consecutive decline since Dec. 5.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 110 yuan to finish at 13,510 yuan ($1,882.38) per metric ton. Six production lines at four domestic plants have been affected by shipment halts due to irregularities at Toyota Industries, a Toyota spokesperson said. Toyota will decide on Feb. 1 whether to resume production from Friday.
Honda Motor announced it will temporarily reduce production at Suzuda and Honda Auto Body plants in Mie due to parts supply disruptions following the Noto earthquake.
Uncertainty around how the court order to liquidate Evergrande Group will play out and its impact on China’s fragile property market is keeping investors on edge. China’s manufacturing activity likely shrank for the fourth consecutive month, though at a slower pace in January, a Reuters poll showed on Monday.
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