SINGAPORE: Japanese rubber futures on Friday recorded a 4-day rally and posted weekly gains for the first time in 10, helped by a softer yen, though growing concerns of property crisis in China loomed.
Osaka Exchange’s rubber contract for January delivery finished 2.3 yen, or 1.2%, higher at 198.6 yen ($1.37) per kg. The benchmark contract climbed 1.1% for the week. The rubber contract on the Shanghai futures exchange for January delivery gained 15 yuan to finish at 12,147 yuan ($1,667.19) per ton. Japan’s benchmark Nikkei average closed 0.55% lower. The yen last firmed 0.31% against the dollar to 145.39 after reaching a nine-month low of 146.40 overnight. A weaker yen makes assets dominated by the currency more affordable for overseas buyers.
Still, most participants were sidelined as physicals haven’t dropped as fast as futures and most movements in the latter were currency-driven this week, said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company.
“Overall, macroeconomic factors and China’s property crisis squashed any initial support levels in rubber futures. Sentiment is negative and market confidence of a demand recovery in the fourth quarter has waned,” Miller added.
Embattled developer China Evergrande Group has filed for bankruptcy protection in a US court as part of one of the world’s biggest debt restructuring exercises, as anxiety grows over China’s worsening property crisis and a weakening economy.
Asian shares were headed for their third straight week of losses on Friday, hammered by concerns about China’s ailing economy and fears of US rates staying higher for longer after a run of strong data sent long-term Treasury yields surging.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded flat at 127.4 US cents per kg.
Comments
Comments are closed.