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SINGAPORE: Japanese rubber futures snapped a five-session rally on Monday, tracking losses in the Shanghai market and weaker domestic equities as continued concerns over a global economic slowdown weighed on sentiment.

The Osaka Exchange rubber contract for May delivery was down 0.6 yen, or 0.3%, at 229.4 yen ($1.68) per kg as of 0200 GMT. The rubber contract on the Shanghai futures exchange for January delivery was down 150 yuan, or 1.1%, at 13,030 yuan ($1,866) per tonne.

Japan’s benchmark Nikkei share average opened down 0.57%. Hopes have grown in recent weeks that rubber demand in top buyer China would improve as more cities relax Covid-19 restrictions that have limited industrial activity and consumption.

Mainland China’s Health Commission reported 8,838 new coronavirus cases for Dec. 11, compared with 10,815 new cases a day earlier. China’s auto sales are likely to rise 3% to hit 27.6 million in 2023, the country’s top auto industry body said, expecting economic recovery to offset such negatives as rising Covid-19 infection. US November CPI data dominates this week’s economic calendar after softer-than-expected October CPI drove a stock market rally last month, and sent US yields and the dollar lower.

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