SINGAPORE: Japanese rubber futures ended flat on Wednesday after a two-day losing streak, as a volatile yen and supply woes in top producer Thailand both weighed. The Osaka Exchange (OSE) rubber contract for January delivery ended at 315.1 yen ($2.06) per kg, unchanged from its previous close.

The September rubber contract on the Shanghai Futures Exchange (SHFE) rose 80 yuan, or 0.56%, to finish at 14,300 yuan ($1,979.29) per metric ton. The overall market is “slightly directionless” today, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies.

The Japanese contract’s moves are likely linked to movements in the yen or rains in top producer Thailand impacting raw material prices, added Miller. The yen rallied as much as 0.8% to a more than three-month high of 151.58 per dollar on Wednesday after the Bank of Japan announced its interest rate hike, but sharply reversed those gains within minutes.

A stronger currency makes yen-denominated assets less affordable to overseas buyers. Thailand’s meteorological agency warned of heavy rains that may cause flash flood from July 31-August 6. Rubber prices in other key Asian futures exchanges are seeing a “slight recovery”, supported by the Chinese government’s pledge to tilt stimulus towards consumers to boost domestic demand, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber. Chinese manufacturing data, while disappointing, is in line with analysts’ expectations, added Jacob.

China’s manufacturing activity slipped to a five-month nadir in July as factories grappled with falling new orders and low prices, pointing to a grinding second half for the world’s production powerhouse. The front-month rubber contract on Singapore Exchange’s SICOM platform for August delivery was last at 164.2 US cents per kg, up 1.5%.