SINGAPORE: Japanese rubber futures tracked Shanghai lower on Friday and fell for the sixth week in eight, as the market awaited more details on Beijing’s latest pledges to boost the Chinese economy. Osaka Exchange’s rubber contract for January delivery finished 0.4 yen, or 0.2%, lower at 197.5 yen ($1.39) per kg, shedding earlier gains.
The benchmark contract lost 0.8% for the week and has fallen 6.8% since its last weekly gain on June 9. The rubber contract on the Shanghai futures exchange for September delivery fell 80 yuan to finish at 11,990 yuan ($1,669.47) per metric ton. Japan’s benchmark Nikkei average closed 0.10% higher.
“Futures markets receded to previous support levels despite recent China stimulus and higher electric vehicle sales in the past month,” said Farah Miller, CEO, Helixtap Technologies, an independent rubber-focused data company.
“We’ll likely see range-bound levels as market participants remain cautious and continue to look for signals that translate to better demand”.
China’s Zhengzhou city launched measures to support its property market, the first of such moves by a big city heeding signals from policymakers, while China’s central bank governor pledged on Thursday to guide more financial resources towards the private economy.
Japan’s economy likely grew an annualised 3.1% in April-June to mark a third straight quarter of expansion, according to a Reuters poll, limiting losses in rubber futures.
Asian shares inched higher, while the dollar retreated from a one-month peak as investors assessed US economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day. * The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 128.1 US cents per kg, down 0.2%.
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