Japan futures dip on global demand concerns
SINGAPORE, Dec 19 (Reuters) -
Japanese rubber futures edged lower on Thursday, weighed down by prospects of softer global demand for the commodity, although a weaker yen limited the losses.
The Osaka Exchange (OSE) rubber contract for May delivery JRUc6, 0#2JRU: was down 2.2 yen, or 0.59%, at 368.8 yen ($2.39) per kg, as of 0211 GMT.
The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 255 yuan, or 1.41%, to 17,730 yuan ($2,429.47) per metric ton.
Economic data released this week showed an unexpected weakness in Chinese consumption, threatening to drag on the economy amid Trump's looming tariff threats and indicating Beijing's policy efforts to stimulate growth this year have yet to turn the corner.
The disappointing data overshadowed bets of more forceful fiscal stimulus that followed a Reuters report saying China is planning a record budget deficit for 2025.
Oil prices fell in early trading after the U.S. Federal Reserve cautioned that it would slow the pace of interest rate cuts in the coming year, potentially impacting fuel demand. O/R
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Japan's Nikkei .N225 fell 1.8% following Fed's signal that it would ease the pace of rate cuts in 2025 and as investors braced for the BOJ meeting's outcome.
The yen JPY=EBS sank to a one-month low of 154.88 per dollar, extending its 0.84% drop in the previous session as markets awaited the Bank of Japan's policy meeting, where it is expected to stand pat on rates. USD/
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
The front-month January rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 191.3 U.S. cents per kg, down 0.6%.
($1 = 154.5900 yen)
($1 = 7.2979 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
