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Business Recorder
2 days ago
- Business
- Business Recorder
Japan rubber futures end lower on weaker Tokyo equities, stronger yen
TOKYO: Japanese rubber futures dropped more than 2% on Thursday, pressured by lacklustre Tokyo equities and a stronger yen, though expectations of steady domestic demand helped limit the decline. The Osaka Exchange (OSE) rubber contract for January delivery ended down 7.2 yen, or 2.2%, at 317.2 yen ($2.16) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 230 yuan to settle at 15,635 yuan ($2,179) per metric ton. Japan's Nikkei share average fell 1.45%, pulling back from a record high scaled in the previous session, on concerns over a potential shift in Bank of Japan policy and a stronger yen. 'Rubber prices have been following the Japanese equities market this week, particularly stocks related to domestic consumption,' said Jiong Gu, an analyst at Yutaka Trusty Securities, adding that the strong yen was also a selling factor. Japan rubber futures track oil higher Still, the losses were capped as inventory drawdowns were steady in July, raising views of strong domestic demand, he said. The yen traded at 146.53 against the U.S. dollar, compared with around 147.93 yen during the Asian trade late on Wednesday. A stronger currency makes yen-denominated assets less affordable to overseas buyers. The dollar weakened to a two-week low against a basket of major peers on shifting expectations of U.S. rate cuts, with comments from the U.S. Treasury Secretary Scott Bessent also sparking some wagers on an outsized 50 basis point cut. The front-month rubber contract on Singapore Exchange's SICOM platform for September delivery last traded at 168.3 U.S. cents per kg, down 0.6%.
Business Recorder
26-05-2025
- Business
- Business Recorder
Japanese rubber futures track Shanghai drop amid fears over US-China tariff war
TOKYO: Japanese rubber futures fell on Monday, tracking a decline in Shanghai futures, weighed by concerns over the US-China tariff war, while a stronger yen also prompted fresh selling. The Osaka Exchange (OSE) rubber contract for October delivery finished 1.7 yen, or 0.5%, lower at 318.3 yen ($2.2) per kg. The contract climbed 2.1% last week, logging its fourth consecutive weekly gain. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dropped 330 yuan to settle at 14,400 yuan ($2,005) per metric ton. 'The OSE followed a sell-off in Shanghai, driven by uncertainty over the future of tariff negotiations between the US and China,' said Jiong Gu, an analyst at Yutaka Trusty Securities. 'As the market had been on an upward trend for the past few weeks, some profit-taking also kicked in for adjustment,' he said. But the downside was limited due to supply concerns caused by bad weather in Thailand, he added. Thailand's meteorological agency warned of heavy rain and accumulation that may cause flash floods during May 26-27. China is weighing new policy tools in the face of an international economic and trade order that is 'under severe impact,' Chinese Premier Li Qiang told a symposium with Chinese firms in Jakarta over the weekend. Japanese Prime Minister Shigeru Ishiba on Sunday said Tokyo aims to advance tariff talks with the United States, with the goal of achieving an outcome during the Group of Seven summit next month.
