Japanese futures track weak crude prices, Shanghai market lower
Japanese rubber futures inched lower on Thursday, as weaker crude prices and Shanghai market amid continued concerns over a global economic slowdown weighed on sentiment.
Osaka Exchange's rubber contract for March delivery
TRB1!, TRB1! finished down 0.3 yen, or 0.1%, at 227.6 yen ($1.57) per kg.The rubber contract on the Shanghai futures exchange for January delivery
RSS31! fell 15 yuan to finish at 13,285 yuan ($1,846) per tonne. Japan's benchmark Nikkei share average
NI225 closed 0.95% higher. Oil prices fell on Thursday after gaining more than $3 in the prior session, with a strong dollar capping oil demand and concerns over the faltering global economic outlook clouding market sentiment.
The natural rubber market is hindered by weaker oil prices as manufacturers are disincentivised from shifting away from synthetic rubber, which is derived from oil, thus driving natural rubber prices lower.
China's economy generally recovered and stabilised in the third quarter and the country will push ahead with its economic programme in the fourth, state media quoted Premier Li Keqiang as saying on Wednesday.
Past months have seen concerns over weak rubber demand in top buyer China, as the country struggles with a property crisis, heat waves disrupting production and extended lockdowns hitting industrial activity and consumption.
Rubber output in top exporter Thailand might be affected by forecasts for continued heavy rains and flood warnings across the country.
Toyota Motor Corp
7203 said on Thursday its global vehicle production grew at a record pace for the month of August, as the sector recovered from the COVID-19 pandemic and production capacity increased, mainly overseas. Asian share markets rose on Thursday after Britain's central bank launched an emergency bond buying programme to stabilise a furious sell-off in gilts, though trade was skittish and sterling remained under pressure.
The front-month rubber contract on Singapore Exchange's SICOM platform for October delivery
TF1! last traded at 134.3 U.S. cents per kg, up 1.4%.
($1 = 144.6500 yen)
($1 = 7.1977 yuan)