Japan futures fall on global demand concerns
Updates market at close
SINGAPORE, Dec 19 (Reuters) -
Japanese rubber futures declined 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: closed down 5.1 yen, or 1.37%, at 365.9 yen ($2.34) per kg.
The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 390 yuan, or 2.17%, to 17,595 yuan ($2,410.70) 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 that Beijing's policy efforts to stimulate growth this year have yet to turn the corner.
China is widely expected to leave its benchmark lending rates unchanged on Friday, a Reuters poll showed, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.
Oil prices fell in Asian trade after the U.S. Federal Reserve cautioned that it would slow the pace of interest rate cuts in the coming year, which could hurt economic growth and reduce 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.
The yen JPY=EBS fell in the wake of the Bank of Japan's decision to keep interest rates steady, weakening more than 0.3% against the dollar to a one-month low of 155.43. USD/
A softer Japanese currency makes yen-denominated assets more affordable for overseas buyers. FRX/
Japan's Nikkei .N225 ended the day 0.69% lower, narrowing losses as the yen weakened. The Fed's hawkish stance had earlier sent U.S. stocks sliding, which weighed on Japanese equities at the open.
The front-month January rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 189.2 U.S. cents per kg, down 1.7%.
($1 = 156.5100 yen)
($1 = 7.2987 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips and Abinaya Vijayaraghavan
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