SINGAPORE/TOKYO: Japanese rubber futures ended flat on Thursday in thin trade as investors refrained from making big bets ahead of the long Lunar New Year break in China.
The Osaka Exchange (OSE) rubber contract for July delivery was unchanged at 277.6 yen ($1.87) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 90 yuan to finish at 13,365 yuan ($1,857.69) per metric ton.
The market has been quieter ahead of the Lunar New Year holiday, and most tyre factories in China have halted production, said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company.
“Going forward, the major factor is early wintering in Thailand and Vietnam, but price increases would largely depend on stronger demand, which remains to be seen amidst weaker macro factors in China,” Miller said.
China’s consumer prices fell at their steepest pace in more than 14 years in January while producer prices also dropped, ramping up pressure on policymakers to do more to revive an economy low on confidence and facing deflationary risks. China’s January vehicle sales tumbled 22.7% month-on-month, while new energy vehicle sales fell 38.8%, the first such drop since August 2023.
Chinese shares managed to hold onto weekly gains as Beijing rolled out a slew of measures to revive market sentiment. China ousted the head of its securities watchdog, replacing him with a veteran regulator with a reputation for tough action. Japan’s benchmark Nikkei average surged 2.1% to close at its highest in 34 years. The yen weakened 0.36% against the dollar after the Bank of Japan ruled out rapid rate hikes, helping accelerate Japanese stock gains and boosting investor sentiment in the rubber market as it made yen-denominated assets more affordable for overseas buyers.
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