SINGAPORE: Japanese rubber futures remained in the red on Monday, tracking subdued trading activity in China, as investors sought a more substantial stimulus before making their next moves.

The Osaka Exchange (OSE) rubber contract for November delivery was down 1.1 yen, or 0.5%, at 204.9 yen ($1.43) per kg as of 0213 GMT, extending losses from the previous week.

The benchmark contract fell to a nearly 11-week low earlier in the session, at 204.6 yen. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was down 240 yuan, or 2.0%, at 11,840 yuan ($1,642.12) per metric ton, as trade resumed after the Dragon Boat Festival holiday last week.

Japan’s benchmark Nikkei average opened down 0.41%. Investors are waiting for a big burst of stimulus from China before they make more aggressive bets on a recovery, having spent the past few months disappointed by economic data and a lack of meaningful policy response from Beijing.

S&P Global on Sunday said it has cut its 2023 gross domestic product (GDP) growth forecast for China after May data showed a post-COVID recovery was faltering in the world’s second-largest economy. Japan’s manufacturing activity fell back into contraction in June and service sector growth slowed for the first time in seven months, surveys showed last Friday.

The Japanese yen firmed 0.11% against the dollar to 143.57, making yen-dominated assets less affordable when purchased in other currencies. Stocks slipped slightly and oil rose in early trade on Monday, as investors figured an abortive weekend mutiny by Russian mercenaries raised questions about stability and crude supply. The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 131.9 US cents per kg, down 0.4%.