SINGAPORE: Japanese rubber futures struggled for direction on Tuesday, after a brief bounce in the previous session, as traders awaited concrete details on China’s latest stimulus measures.
The Osaka Exchange (OSE) rubber contract for January delivery held its ground at 200.3 yen ($1.40) per kg, as of 0220 GMT. The benchmark contract has been hovering near a two-year low since July 18. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was down 10 yuan, or 0.1%, at 12,270 yuan ($1,712.20) per metric ton.
Japan’s benchmark Nikkei average opened 0.36% higher. China’s manufacturing activity fell for a fourth straight month in July, albeit at a slower pace, an official factory survey showed on Monday, reinforcing the need for further policy support to boost domestic demand. Chinese authorities released additional policy guidelines later that day, but no concrete measures to boost the sputtering economy and domestic consumption, leaving investors wanting as dull activity data heightened pressure for officials to act. The yen eased on Tuesday, hovering near a three-week low as traders weigh the Bank of Japan’s steps last week to tweak its yield curve control policy. A weaker yen makes assets dominated by the currency more affordable for overseas buyers. The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 130.0 US cents per kg, down 0.5%.
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