SINGAPORE: Japanese rubber futures contracted for a second session on Thursday, as supply concerns in top producer countries eased while weak economic data dragged down prices further.
Osaka Exchange’s rubber contract for October delivery finished 3.7 yen, or 1.8%, lower at 207.7 yen ($1.55) per kg. The rubber contract on the Shanghai futures exchange for September delivery fell 210 yuan to finish at 11,740 yuan ($1,698.13) per tonne.
Japan’s benchmark Nikkei average closed 0.15% higher. With no follow through regarding heat waves in Thailand and white root disease in China possibly impacting output, the market lost confidence in the uptrend, said a Singapore-based trader, adding that any supply impact will only be legible in about two weeks.
China’s industrial firms profit shrank at a slower pace in the first quarter, as the economy has yet to be assured of a full recovery despite a pick-up in services and consumption.
Similarly, new orders for key US-manufactured capital goods fell more than expected in March and shipments declined, while US consumer confidence dropped to a nine-month low in April, further heightening the risk that the economy could fall into recession this year.
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