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



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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

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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