SINGAPORE: Japanese rubber futures snapped a two-day losing streak on Tuesday, as US President Donald Trump delayed did not announce trade tariffs immediately after his inauguration, though sentiment in top consumer China remained volatile.
The Osaka Exchange (OSE) rubber contract for June delivery ended daytime trade 3 yen higher, or 0.8%, at 378.5 yen ($2.43) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for March delivery edged up 5 yuan, or 0.03%, closing at 17,390 yuan ($2,390.12) per metric ton. The most active February butadiene rubber contract on the SHFE edged up 105 yuan, or 0.71%, to 14,985 yuan ($2,059.57) per metric ton. Chinese stocks and the yuan tentatively rose, with investors relieved that Trump did not announce hefty trade tariffs at his inauguration but unwilling to bet this meant improved US-Sino relations. Additionally, Trump suggested the US could impose 25% tariffs on imports from Canada and Mexico on Feb. 1.
He also floated the idea of universal tariffs, but said the US was not ready for it yet. Shares of Japanese automakers and South Korean battery makers declined, after Trump revoked the previous administration’s executive order on electric vehicles. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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