Japan futures set for weekly loss as tepid global demand outlook weighs
SINGAPORE, Dec 20 (Reuters) -
Japanese rubber futures edged higher on Friday, although they were on track to end the week lower, as a softer yen lent support to prices but a subdued global demand outlook dampened market sentiment.
The May Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was up 2.2 yen, or 0.6%, at 368.1 yen ($2.34) per kg, as of 0210 GMT, although it has lost 0.35% so far this week.
The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 30 yuan, or 0.17%, to 17,735 yuan ($2,430.25) per metric ton. The contract has lost 4.14% so far this week.
The yen JPY=EBS on Friday weakened to a five-month low of 157.93 per dollar, as it continues to remain under pressure from the Bank of Japan's reluctance to further raise rates. USD/
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Japan's Nikkei .N225 rose 0.2% on Friday and is up a whopping 16% for the year, in part due to the weakness in the yen, which has depreciated 12% in 2024.
Oil prices fell on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down more than 2%. 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.
China, the world's top consumer of rubber, left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.
Persistent deflationary pressure and tepid credit demand call for more stimulus to aid China's economy, but narrowing interest margins and a weakening yuan limit the scope for immediate monetary easing by Beijing.
The front-month January rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 190.9 U.S. cents per kg, up 0.8%.
($1 = 157.2800 yen)
($1 = 7.2976 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.
