Japan futures snap nine-day rally on bleak Chinese data, weaker oil
SINGAPORE, Sept 2 (Reuters) -
Japanese rubber futures snapped a nine-session rally on Monday, hit by soft economic data from top consumer China and lower oil prices, although a weaker yen limited losses.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was down 0.2 yen, or 0.05%, at 375.4 yen ($2.57) per kg as of 0210 GMT.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 70 yuan, or 0.42%, to 16,570 yuan ($2,333.38) per metric ton.
China's manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official survey showed on Saturday, pressuring policymakers to press on with plans to direct more stimulus to households.
Sentiment remains gloomy among manufacturers as a years-long property crisis keeps domestic demand in the doldrums and Western curbs loom on Chinese exports such as electric vehicles.
Oil prices extended losses, with investors weighing higher OPEC+ production from October against a sharp drop in output from Libya amid sluggish demand in China and the U.S., the world's two biggest oil consumers. 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 dollar advanced to its strongest since Aug. 21 against the yen, buoyed by a rise in long-term Treasury yields after a closely watched measure of U.S. inflation held steady, reducing the imperative for a major Fed rate cut.
It rose as much as 0.27% to 146.60 yen JPY=EBS, and was last at 146.29. USD/
A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
The front-month October rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 180.9 U.S. cents per kg, down 0.8%.
($1 = 146.1900 yen)
($1 = 7.1013 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
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