Japan futures strengthen as firm raw material prices offset soft China data
Updates closing prices with details
SINGAPORE, Nov 27 (Reuters) -
Japanese rubber futures rose for a third straight session on Wednesday, reversing earlier losses, as strong raw material prices outweighed weaker economic data from top consumer China.
The May Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed up 2.0 yen, or 0.79%, at 367.9 yen ($2.42) per kg.
The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 255 yuan, or 1.44%, to finish at 17,940 yuan ($2,474.45) per metric ton.
Top producer Thailand's meteorological agency warned of heavy to very heavy rains that may cause flash flood from Nov. 27 to Dec. 1.
The wet weather may impact supply from Thailand, the world’s top rubber producer
The price of Thai raw material continues to support natural rubber, said Chinese futures trading site Beite Futures in a note.
China's industrial profits fell again in October but less sharply than the previous month as deflation pressures dragged and demand remained soft in the crisis-hit economy.
Separate economic indicators earlier this month pointed to broadly soft demand, with consumer prices at their weakest in four months while industrial output continued to trend downward.
Chinese state media warned U.S. President-elect Donald Trump his pledge to slap additional tariffs on Chinese imports could drag the world's two largest economies into a mutually destructive tariff war.
Trump on Monday said he would impose "an additional 10% tariff, above any additional tariffs" on imports from China. He had previously said he would introduce tariffs in excess of 60% on Chinese goods.
The yen JPY=EBS outperformed on Wednesday, with the U.S. dollar last down 0.47% at a near three-week low of 152.37 yen USD/
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. FRX/
The front-month December rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 190.1 U.S. cents per kg, up 1.5%.
($1 = 152.0300 yen)
($1 = 7.2501 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich and Janane Venkatraman
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