Categories: World

RUBBER-Japan futures dip on slowing China auto sales; weaker yen cushions losses

Published by TSG Syndication

Oct 2 (Reuters) - * Japanese rubber futures fell on Thursday, pressured by a slowdown in Chinese auto sales, although a weaker yen provided some support to prices. * The Osaka Exchange (OSE) rubber contract for March delivery was down 1.8 yen, or 0.6%, at 298.2 yen ($2.03) per kg, as of 0232 GMT. * Top Chinese electric vehicle maker BYD's third-quarter sales fell 2.1% year-on-year, marking the first quarterly decline for the firm in over five years. The slowdown signals a possible end to BYD's era of record-setting expansion. * Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. * Chinese markets are closed from October 1 to 8 for the Golden Week holiday. * Japan's Nikkei was up about 0.5%, with chip stocks among the notable gainers. * The dollar traded at 147.305 yen, up 0.2% from late U.S. levels as traders weighed the impact of the U.S. government shutdown. * A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. * Oil prices rebounded from 16-week lows on prospects of tighter sanctions on Russian crude. * Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. * Top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in its weather forecast from September 30-October 6. * The front-month rubber contract on Singapore Exchange's SICOM platform for October delivery last traded at 168.2 U.S. cents per kg, up 0.1%. ($1 = 147.0400 yen) (Reporting by Lucas Liew; Editing by Subhranshu Sahu) (The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
TSG Syndication
Published by TSG Syndication