SINGAPORE: Japanese rubber futures edged lower on Monday as trading thinned ahead of the year-end, while investors looked for further stimulus from top consumer China.
The Osaka Exchange (OSE) rubber contract for May delivery closed down 3.6 yen, or 0.98%, at 363.4 yen ($2.32) per kg.
The May rubber contract on the Shanghai Futures Exchange (SHFE) fell 205 yuan, or 1.16%, to 17,495 yuan ($2,396.94) per metric ton.
“Market sentiment remains weak, with light trading activity expected to persist through the remainder of the year,” Japan Exchange Group said in a report.
The muted activity likely reflects year-end adjustments as traders reduce their risk appetite, Japan Exchange Group said.
China’s policy-triggered bull run that started in late September has lost steam as economic fundamentals have yet to turn the corner amid looming US tariff risks.
China left its benchmark lending rates unchanged on Friday, as persistent deflationary pressure and tepid credit demand call for more stimulus to aid the economy, but narrowing interest margins and a weakening yuan limit the scope for immediate monetary easing.
Britain’s finance minister Rachel Reeves will visit China for two days in January to revive high-level economic and financial talks that have been frozen since 2019, people with knowledge of the plan said.
The dollar’s rise, coupled with the Bank of Japan standing pat last week and reduced odds of a Japanese rate hike next month, has left the yen rooted near levels of weakness that could prompt authorities to intervene.
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