SINGAPORE: Japanese rubber futures extended losses for a second straight session, as prices corrected following a sharp rally to a 12-1/2-year high last Monday, while lower domestic equities also weighed on investor sentiment.
The Osaka Exchange (OSE) rubber contract for August delivery was down 1.9 yen, or 0.58%, at 325.9 yen ($2.15) per kg, as of 0200 GMT on Monday. The contract declined 6.87% last week. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was down 140 yuan, or 0.95%, at 14,550 yuan ($2,021.56) per metric ton.
“Prices (of the OSE August Contract) are expected to consolidate within the range of 300 to 315 levels in the near term,” Japan Exchange Group said in its weekly report.
Japan’s benchmark Nikkei average opened 0.22% lower. The dollar was on the front foot and kept the yen pinned near a multi-decade low, though the threat of currency intervention from Japanese authorities prevented the greenback from heading further north.
Japan’s top currency diplomat said on Monday the yen’s current weakness did not reflect fundamentals, adding to the rhetoric of government officials who have stepped up warnings in recent days over the currency’s decline.
Tesla has reduced its car production at its plant in China, Bloomberg News reported on Friday, as the US electric vehicle-maker grapples with slow demand and strong competition in the market.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.1% from last Friday, the exchange said on Friday, marking the first contraction since Nov. 25.
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