TOKYO: Japanese rubber futures ended flat on Thursday as investors remained cautious amid fears over a slowing global economy, driven by weak economic data from top buyer China and the Bank of Japan’s downward revision of its economic outlook.
The Osaka Exchange (OSE) rubber contract for October delivery finished 0.1 yen higher at 294.0 yen ($2.04) per kg. * The contract declined 15.8% in April.
Data on Wednesday showed that Chinese factory activity contracted at the fastest pace in 16 months in April, keeping alive calls for further stimulus.
The US economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of President Donald Trump’s often chaotic trade policy.
The Bank of Japan kept interest rates steady and sharply cut its growth forecasts on Thursday, suggesting that the uncertainty surrounding US tariffs and the hit to exports could keep policy in a holding pattern for some time. Japan’s factory activity shrank for the 10th straight month in April on weaker overseas demand and concerns about US tariffs, a private-sector survey showed on Thursday. But Japan’s Nikkei share average rose on Thursday, extending early gains after the BOJ slashed growth and inflation forecasts in a sign it would take longer than previously expected to raise interest rates again.
China’s financial markets are closed from May 1-5 for a public holiday. Trading will resume Tuesday, May 6. Singapore financial markets are closed on Thursday for Labour Day holiday. Japanese rubber futures post biggest monthly drop since 2017 on tariff jitters.
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