TOKYO: Japanese rubber futures fell on Friday, marking a fifth consecutive weekly loss, pressured by concerns over the China-US trade war and a stronger yen, though trading was thin owing to Easter holidays.
The Osaka Exchange (OSE) rubber contract for September delivery finished down 1.2 yen, or 0.41%, at 290.9 yen ($2) per kg. he contract lost 2.3% over the week. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery slid 65 yuan to finish at 14,590 yuan ($1,998) a metric ton.
“Concerns over slowing global demand amid the tariff war have dampened market sentiment,” said Yutaka Trusty Securities analyst Jiong Gu.
“However, given the low rubber inventory levels in Japan and relatively cheaper domestic prices, the market may be near its bottom and could rebound next week, led by near-term contracts,” he said. US President Donald Trump on Thursday signalled a potential end to the tit-for-tat tariff increases between the US and China that shocked markets and said that a deal over the fate of social media platform TikTok may have to wait.
Though the US and China are in touch, sources told Reuters that free-flowing, high-level exchanges that would lead to a deal have largely been absent. The yen traded around 142.32 against the US dollar, compared with 142.72 yen in late Thursday trade in Asia.
A stronger currency makes yen-denominated assets less affordable for overseas buyers. Japan’s Nikkei share average rose 1% on Friday to clock its best week in three months as investors turned more hopeful that Trump would be able to broker trade deals with some of its top trading partners, including Japan.
Singapore’s financial markets were closed on Friday for a public holiday. Trading will resume on Monday, April 21.
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