TOKYO: Japanese rubber futures dipped on Monday, pressured by a weaker Tokyo equity market, while a raft of soft economic data in top consumer China and a stronger yen against the US dollar added to the downside.
The Osaka Exchange (OSE) rubber contract for May delivery finished 0.3 yen, or 0.1 percent, lower at 330.5 yen (USD2.1) per kg.
The contract gained 1.7 percent last week. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 30 yuan to settle at 15,200 yuan (USD2,157) per metric ton. Japan’s Nikkei share average dropped more than 1percent on Monday as tech stocks tracked their Wall Street peers lower on lingering worries over stretched valuations. The yen traded at 155.12 against the US dollar, compared with 155.74 in late Friday Asia market. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
The yen strengthened ahead of a likely Japanese rate rise in a week. The Bank of Japan will likely maintain a pledge to keep raising interest rates, according to sources familiar with its thinking. Big Japanese manufacturers’ business sentiment hit a four-year high in the three months to December, a closely watched survey showed, reinforcing market expectations the central bank will raise interest rates this week.
China’s factory output growth slowed to a 15-month low, while retail sales posted their worst performance since the country abruptly ended its draconian “zero-COVID” curbs, highlighting the urgent need for new growth drivers heading into 2026.
Oil prices held steady on Monday as investors balanced supply disruptions linked to escalating US-Venezuela tensions with oversupply concerns and the impact of a potential Russia-Ukraine peace deal.
The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 174.7 US cents per kg, up 0.6 percent.
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