SINGAPORE: Japanese rubber futures snapped a three-session rally on Wednesday, weighed down by a firmer yen and as a batch of mixed trade data from China clouded prospects of demand from the world’s top consumer.
The Osaka Exchange (OSE) rubber contract for February delivery closed down 7.8 yen, or 2.16%, at 352.7 yen ($2.50) per kg.
The January rubber contract on the Shanghai Futures Exchange (SHFE) fell 100 yuan, or 0.59%, to finish at 16,745 yuan ($2,354.01) per metric ton.
Prices of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber were down 1.68% and 1.09% to 91.46 baht ($2.72) and 67.23 baht, respectively.
The Bank of Japan will continue to raise interest rates if inflation moves in line with its forecast, policymaker Junko Nakagawa said.
Her comments pushed up the yen as markets took them as a renewed sign the BOJ could raise rates in coming months.
The dollar stood at 140.79 yen, down more than 1% and hitting the lowest level since Dec. 28, also weighed down by the outcome of the US presidential debate.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
Japan’s Nikkei closed down 1.49%.
China’s mixed trade data highlights the challenge facing Beijing as policymakers try to bolster overall growth without becoming too reliant on exports, amid consumers tightening their purse strings.
European firms in China doubt the government has a credible plan to ost demand in the ailing economy or will carry out long-promised reforms, a European business lobby group said.
The front-month October rubber contract on Singapore Exchange’s SICOM platform last traded at 182.9 US cents per kg, up 0.4%.
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