SINGAPORE: Japanese rubber futures fell on Thursday, weighed down by the prospect of mounting trade tensions between the US and China, while a stronger yen also added pressure.
The Osaka Exchange (OSE) rubber contract for December delivery closed down 5.6 yen, or 1.73%, at 317.2 yen ($2.03) per kg. The September rubber contract on the Shanghai Futures Exchange (SHFE) gained 90 yuan, or 0.62%, to finish at 163.4 yuan ($22.52) per metric ton.
Natural rubber futures are expected to be “slightly bearish”, taking cue from wider Asian speculative market sentiment, which is weighed down by concerns over Sino-US trade policy following November’s election, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
Presidential candidate Donald Trump on Wednesday said he would impose new tariffs targeting China between 60% to 100%, alongside a 10% tariff on imports from other countries. The World Trade Organization said on Wednesday it was unable to get a clear picture of China’s financial support for key industrial sectors, including electric vehicles, due to an “overall lack of transparency”.
Several Western countries criticised China’s industrial policies, with Washington accusing Beijing of “predatory” industrial practices. The yen scaled a six-week high of 155.37 per dollar on Thursday, while the dollar nursed broad losses as markets prepared for US rate cuts in a few months.
Comments
Comments are closed for this article.