Japan rubber futures dip on China auto price war, firmer yen
The Osaka Exchange (OSE) rubber contract for January delivery ended daytime trade down 4.1 yen, or 1.26%, at 321.9 yen ($2.17) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery lost 230 yuan, or 1.51%, to 15,010 yuan ($2,091.61) per metric ton.
The most active September butadiene rubber contract on the SHFE fell 290 yuan, or 2.39%, to 11,835 yuan($1,649.18) per metric ton.
A Reuters analysis of consumer complaints found widespread inflation of sales figures by Chinese automakers and dealers, a tactic used to boost car sales numbers amid a prolonged price war in the world's largest auto market.
This approach masks the true level of inventory held by automakers, potentially causing them to overestimate monthly demand and schedule higher production.
Japanese rubber slips on profit-taking
Lower automobile prices, driven by fierce competition, exert a downward pressure on rubber tyre prices.
Meanwhile, the yen edged up to 148.22 per dollar.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
Still, top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations on July 29.
Elsewhere, top producer Thailand and Cambodia agreed to a ceasefire on Monday after five days of intense fighting. However, Thailand later accused Cambodian troops of multiple attacks in violation of the agreement.
front-month rubber contract on Singapore Exchange's SICOM platform for August delivery last traded at 168.5 U.S. cents per kg, down 1.1%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Records tumble at PSX as buying rally continues
Buying momentum continued at the Pakistan Stock Exchange (PSX), fueled by a strong economic outlook and robust corporate earnings, with the benchmark KSE-100 Index settling at a new record high on Thursday. Positive sentiment prevailed for most of the trading session, driving the KSE-100 Index to an intra-day high of 146,081.02. At close, the benchmark index settled at 145,647.13, a new record high, following an increase of 558.64 points or 0.39%. On Wednesday, the PSX sustained its record-breaking rally as the benchmark KSE-100 Index soared by 2,051 points, or 1.43%, to settle at an all-time closing high of 145,088.50 points. In a Prime Minister's Office statement, PM Shehbaz Sharif expressed satisfaction as the stock exchange index surpassed the 145,000-point mark, signalling increased investor confidence in government policies. PM attributed the surge in stock market activity to business-friendly reforms and said providing support for investment remains a top priority for his administration. International markets Asian equities rose on Thursday, with Japanese shares hitting a record high, as tech-led gains on Wall Street, upbeat earnings and growing expectations for U.S. rate cuts boosted sentiment. The prospect of a meeting between U.S. President Donald Trump and Russian President Vladimir Putin over the war in Ukraine also underpinned sentiment, benefiting the euro, while weighing on oil prices as traders gauged the outlook for sanctions on Moscow. At the same time, markets largely shook off Trump's latest tariff threats, including an additional 25% tariff on India over purchases of Russian oil and a threatened 100% duty on chips. Japan's broad Topix index rose 0.9% to reach an all-time high, with the more tech-focused Nikkei also gaining by about the same margin. Taiwan's stock benchmark surged 2.3% to a more than one-year peak. South Korea's KOSPI added 0.6%. Hong Kong's Hang Seng rose 0.4%, and mainland Chinese blue chips advanced 0.3%.
Business Recorder
4 hours ago
- Business Recorder
China, Hong Kong stocks extend gains as Chinese exports beat forecasts
HONG KONG: China and Hong Kong stocks rose in morning trade on Thursday as upbeat Chinese trade data added fuel to the recent market rally despite renewed U.S. tariff threats. China's exports beat forecasts in July with outbound shipments up 7.2% year-on-year, customs data showed, as manufacturers made the most of a tariff truce with the U.S. Markets largely looked past U.S. President Donald Trump's comments that he could announce further tariffs on goods from China, similar to the 25% duties slapped earlier on India over its Russian oil purchases, depending on what happens. Investors remain focused on the August 12 deadline, waiting to see if Beijing and Washington could reach a durable tariff agreement. The market shows a risk-on mood with better China July exports, and domestic conviction remains solid, Wee Khoon Chong, a senior APAC market strategist at BNY, Hong Kong, said in a note. BNY maintains its view that the Shanghai benchmark would test 3,700, he added. At the midday break, the Shanghai Composite index was up 0.1% at 3,638.40, after closing at its highest since late 2021 on Wednesday. The blue-chip CSI300 index was up 0.1%. The semiconductor sector led the way, with a 1.3% gain despite Trump saying the U.S. could levy a 100% tariff on some chip imports, as analysts say the move only has limited impact on Chinese chipmakers and could accelerate domestic production. Defensive sectors including banks, liquor and consumer staples were up 0.2%-0.5%. In Hong Kong, the benchmark Hang Seng Index also reversed earlier losses with a 0.5% gain, and the tech index added 0.5%.
Business Recorder
5 hours ago
- Business Recorder
Toyota says it will build new car factory in Japan
TOKYO: Toyota Motor said on Thursday it would build a new vehicle factory in its namesake city in central Japan to start operations in the early 2030s. Production models have yet to be decided, the company said in a statement, along with its financial results for the April-to-June quarter. The announcement of a new domestic factory from the world's top-selling automaker comes even as Japanese car sales have been falling due to a shrinking population and declining ownership. The last assembly plant Toyota built in Japan was in 2012. It also comes as President Donald Trump has complained of a flood of Japanese cars flowing into the U.S. and contributing to a massive trade deficit for his country. Among Japanese automakers, Toyota is the top exporter to the U.S., although most of the vehicles it sells there are built locally. Toyota has had a long-standing policy of maintaining annual production capacity of 3 million vehicles in Japan, with roughly half bound for overseas markets.
