Japan futures hit one-week low on bleak Chinese demand outlook

Reuters

Japan futures hit one-week low on bleak Chinese demand outlook

16Jul2024716 GMT

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Updates closing prices, adds analyst quote and details

SINGAPORE, July 16 (Reuters) -

Japanese rubber futures fell to a one-week low onTuesday as a slew of weaker-than-expected Chinese economic data dampened sentiment.
The Osaka Exchange (OSE) rubber contract for December delivery JRUc6, 0#2JRU: was down 6.3 yen, or 1.94%, at 318.6 yen ($2.01) per kg.
The September rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 15 yuan, or 0.1%, to finish at 14,465 yuan ($1,990.92)per metric ton.
China's economy grew much slower than expected in the second quarter as a protracted property downturn and job insecurity knocked the wind out of a fragile recovery, keeping alive expectations Beijing will need to unleash even more stimulus.
Weighing down the Chinese market sentiment is also a slowdown in tyre makers' enquiries, with buyers taking a "wait-and-watch" stance, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies.
Market participants currently expect the Chinese government to implement more measures to restore confidence at the key economic leadership meeting in Beijing this week, added Miller.
China's two key commodity exchanges, including the SHFE, will halve their hedging fees for listed products to lower users' costs and increase participation in the world's biggest consumer of commodities.
The yen JPY=EBS was weaker after Monday's one-month high of 157.165 to the dollar, keeping traders wary of further intervention by Tokyo. USD/
Japanese authorities kept up their warnings against falls in the yen, with Chief Cabinet Secretary Yoshimasa Hayashi saying they stood ready to take all possible measures in the currency market.
A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
The front-month August rubber contract on Singapore Exchange's SICOM platform STFc1 was flat and last tradedat 161 U.S. cents per kg.

($1 = 158.6400 yen)

($1 = 7.2655 yuan)

Reporting by Gabrielle Ng; Editing by Nivedita Bhattacharjee and Sohini Goswami

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