SINGAPORE: Japanese rubber futures fell for a fourth straight session on Monday, as lacklustre domestic factory output and weaker-than-expected factory activity in top consumer China amid the latest round of COVID-19 curbs dented demand sentiment.
Osaka Exchange’s rubber contract for April delivery finished 1.4 yen, or 0.7%, lower at 209.0 yen ($1.41) per kg, their lowest since Oct. 2021.
The rubber contract on the Shanghai futures exchange for January delivery fell 225 yuan to finish at 11,750 yuan ($1,614) per tonne. Japan’s benchmark Nikkei share average closed 1.78% higher. Japan’s factory output fell in September for the first time in four months as manufacturers grappled with rising raw materials costs and global economic slowdown, and is likely to fall again next month before picking up in November, the government said.
“Market confidence is down as China’s factory activity contraction highlights the negative effects of their continued COVID restrictions,” said a Singapore-based trader.
China’s factory activity unexpectedly fell in October, weighed by softening global demand and strict domestic COVID-19 curbs, which hit production, travel and shipping in the world’s second-largest economy.
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