SINGAPORE: Japanese rubber futures were relatively unchanged on Thursday ahead of China trade, with a firm yen keeping gains in check.
The Osaka Exchange (OSE) rubber contract for December delivery edged up 0.4 yen, or 0.2%, at 204.6 yen ($1.48) per kg as of 0204 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was up 20 yuan, or 0.2%, at 12,375 yuan ($1,725.72) per metric ton.
Japan’s benchmark Nikkei average opened up 0.51%. China’s export slump is expected to have accelerated in June, as sluggish overseas economies struggling with inflation and rising interest rates buy up fewer goods from Chinese factories. Trade data will be released later in the session.
The yen strengthened as much as 0.3% to 138.16 per dollar during early trade, hitting its highest level since mid-May, making yen-dominated assets less affordable when purchased in other currencies.
SHFE is looking to expand its commodities warehousing network outside China, including rubber warehouses in Thailand, three sources with direct knowledge of the matter told Reuters. Ivory Coast exported 530,284 metric tons of natural rubber from January to May, down about 2% from the same period last year, provisional port data showed on Wednesday.
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