Japanese rubber futures rebound on Thai wet weather, softer yen
SINGAPORE: Japanese rubber futures pared earlier losses on Wednesday on a weaker yen, while wet weather in top producer Thailand dampened seasonal harvesting supply prospects. The Osaka Exchange (OSE) rubber contract for November delivery closed up 3.9 yen, or 1.36%, at 290.9 yen ($2.02) per kg.
Due to increased rainfall in domestic and foreign production areas, the output of raw materials has been affected, Chinese commodities data provider Longzhong Information said in a note.
Top producer Thailand's meteorological agency warned of heavy rains and accumulations could cause flash floods from June 7-10.
Still, natural rubber-producing areas in China and Vietnam have begun seasonal harvesting, said Chinese financial information site Tonghuashun Information. Rubber crops usually undergo a season of low production from February to May, followed by a peak harvesting period that lasts until September.
In currency markets, the dollar was up 0.2% at 144.23 yen. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Meanwhile, leading automakers have launched a price war that has further suppressed tyre demand, added Tonghuashun. In China, an intensifying auto industry price war has stoked fears of a long-anticipated shake-out in the world's largest car market.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Japan says ‘progress' but no ‘agreement yet' in US tariff talks
TOKYO: Japan said Saturday it was making 'progress' in talks aimed at easing US President Donald Trump's tariffs but cautioned that the two sides have not found 'a point of agreement yet'. Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium. Trump also announced an additional 24 percent 'reciprocal' tariff on Japan in early April, but later paused it along with similar measures on other countries until early July. Japan wants all levies announced by Trump lifted. Japan's economy shrinks more than expected as US tariff hit looms During a fifth round of talks, 'we further made progress towards an agreement', Ryosei Akazawa, Tokyo's trade envoy, told Japanese reporters in Washington. But, he added: 'We've not been able to find a point of agreement yet'. Akazawa said Tokyo was hoping to seal a deal 'as soon as possible', however, talks may still be ongoing when a summit of the Group of Seven wealthy nations starts on June 15. Japanese Prime Minister Shigeru Ishiba and Trump are reportedly planning to hold bilateral talks around the time of the G7 summit in Canada. Washington's 25-percent auto tariffs are particularly painful for Tokyo, with roughly eight percent of all Japanese jobs tied to the sector. Japan's economy, the world's fourth largest, contracted 0.2 percent in the first quarter of 2025, adding to pressure on the unpopular Ishiba ahead of upper house elections expected in July.
Express Tribune
13 hours ago
- Express Tribune
Oil climbs over $1 onUS-China talks
Listen to article Brent crude rose more than $1 a barrel on Friday morning and oil prices were on track for their first weekly gain in three weeks after US President Donald Trump and Chinese leader Xi Jinping resumed trade talks, raising hopes for growth and stronger demand in the world's two largest economies. Brent crude futures gained $1.50, or 1.61%, to $66.39 a barrel by 1349 GMT. US West Texas Intermediate crude climbed $1.02, or 1.61%, to $64.39. On a weekly basis, both benchmarks were on track to settle higher after declining for two straight weeks. Brent has advanced 2.75% this week, while WTI is trading 4.9% higher. China's official Xinhua news agency said trade talks between Xi and Trump took place at Washington's request on Thursday. Trump said the call had led to a "very positive conclusion", adding the US was "in very good shape with China and the trade deal". Canada also continued trade talks with the US, with Prime Minister Mark Carney in direct contact with Trump, according to Industry Minister Melanie Joly. The oil market continued to swing with news on tariff negotiations and data showing how trade uncertainty and the impact of the US levies are flowing through into the global economy. "The potential for increased US sanctions in Venezuela to limit crude exports and the potential for an Israeli strike on Iranian infrastructure add to upside risks for prices," analysts at BMI, a Fitch affiliate, said in a note on Friday. "But both weaker demand for oil and increased production from both OPEC+ and non-OPEC producers will add to downside price pressures in the coming quarters." Top exporter Saudi Arabia cut its July crude prices for Asia to near two-month lows. That was a smaller price reduction than expected after OPEC+ agreed to ramp up output by 411,000 barrels per day in July. The kingdom had been pushing for a bigger output hike, part of a broader strategy to win back market share and discipline over-producers in OPEC+, which groups the Organisation of the Petroleum Exporting Countries and allies including Russia. "The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+," HSBC said in a note.
Business Recorder
14 hours ago
- Business Recorder
Canada, China agree to ‘regularise communications'
MONTREAL: Canada and China have agreed to regularize channels of communication, the office of Canadian Prime Minister Mark Carney said, after a period of strained diplomatic ties between the two countries. Tensions in the relationship soared following Ottawa's arrest of a senior Chinese telecom executive on a US warrant in 2018, remaining high in subsequent years amid disputes over human rights and election interference allegations. During the call between Carney and Chinese Premier Li Qiang, 'the leaders exchanged views on bilateral relations, including the importance of engagement, and agreed to regularize channels of communication between Canada and China,' the prime minister's office said in a statement late on Thursday. They also discussed trade and 'committed their governments to working together to address the fentanyl crisis,' the statement added. According to Beijing's state news agency Xinhua, Li told Carney that relations between the countries 'have faced unnecessary disturbances and encountered serious difficulties' in recent years. He added that China is 'willing to work with Canada to jointly uphold multilateralism and free trade' in the face of growing unilateralism and protectionism, Xinhua reported, noting that the call came at Carney's request. The comments were a reference to major disruptions in global trade throughout recent weeks caused by US President Donald Trump, who has slapped stinging tariffs on allies and adversaries alike since beginning a second term in January. China and Canada — both major US trading partners — have been on the receiving end of Washington's recent tariff blitz and are currently engaged in negotiations with the Trump administration. Carney surged to victory in Canada's late April election, a stunning comeback for his Liberal Party that had looked headed for a sure defeat at the start of the year. Beijing stopped short of congratulating Carney following the result, though its foreign ministry said at the time that China was open to improving bilateral ties. Canada's 2018 arrest of Huawei executive Meng Wanzhou spurred Beijing to take retaliatory measures that plunged relations into a deep freeze, detaining two Canadians — Michael Spavor and Michael Kovrig — on espionage charges.
