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Japan futures slide on weak Chinese demand sentiment, stronger yen



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Updates closing prices and adds analyst quote

SINGAPORE, July 23 (Reuters) -

  • Japanese rubber futures fell on Tuesday, weighed down by a weak demand outlook from top consumer China, while a stronger yen also added to the decline.

  • The Osaka Exchange (OSE) rubber contract for December delivery JRUc6, 0#2JRU: ended the session lower at 315.6 yen ($2.02) per kg. The contract fell 7.9 yen, or 2.44%, its sharpest drop since June 17.

  • The September rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 finished at 14,370 yuan ($1,975.42) per metric ton. It closed down 230 yuan, or 1.58%, its largest loss since July 5.

  • Amid weak Chinese demand for rubber, market participants are waiting for more signals to push the market either way before returning, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies.

  • Tyre manufacturers are "waiting on the sidelines for opportunistic trades", added Miller.

  • China surprised markets by cutting its major short and long-term interest rates on Monday, its first such broad move since last August, signalling intent to boost economic growth just days after its third plenum.

  • China's shaky economic recovery continues to be plagued by weak domestic demand, persistent deflationary pressures and an anaemic property sector, with analysts saying the government's stimulus measures have been insufficient.

  • Against the yen JPY=EBS, the dollar fell 0.45% to 156.32. USD/

  • The yen has found some support on the back of Tokyo's recent bouts of intervention to prop up the currency and as traders looked to the Bank of Japan's July policy meeting, where it is expected to lay out a detailed bond taper plan.

  • A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/

  • The front-month August rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 160.4 U.S. cents per kg, down 1.1%.

($1 = 156.5500 yen)

($1 = 7.2744 yuan)



Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips and Savio D'Souza

For morning and afternoon prices at Thailand's state-run central rubber market, click on RUB-BKK3.
For other physical rubber prices in Thailand, click on RUB-BKK1, RUB-BKK2.
For more details on Indonesian and Malaysian prices click on RURKJK and RUQG.
* Reuters Terminal users can see cash and futures rubber prices by double clicking on the codes in the brackets:

- Tokyo rubber futures -- 0#JRU:
- Shanghai rubber futures -- 0#SNR:
- Singapore rubber futures -- 0#SRS:0#SRU:0#STF:
- Thai rubber futures -- 0#ARU:0#ASR20:
- All rubber news RUB
- Tokyo rubber report RUB/T
- Shanghai rubber report RUB-CN
- Thailand rubber report RUB/TH
- Asian rubber report RUB/AS

For Related News and other topics, double click on one of these codes: SPEED GUIDES RUBBER1, SOFTS/NEWS1
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