Japanese rubber futures slid on Friday and posted their second straight weekly decline as oil prices stabilized and global stock markets tumbled after scorching US inflation data boosted bets on the Federal Reserve interest rate hike.
The Osaka Exchange rubber contract for August delivery ended at 1.4 yen, or 0.6%, down at 244.1 yen ($2.09) per kg. The benchmark index lost 4.4% over the week.
Oil prices stabilized on Friday and were on track for their biggest weekly declines since November after seeing fears of escalating bans on Russian oil amid efforts to bring more supplies to the market by other major producers.
As oil prices fall, synthetic rubber, derived from petroleum, will be cheaper and rubber users will be able to choose between synthetic rubber and natural rubber, which will lower natural rubber prices, a trader says based in Singapore.
A spike in COVID-19 cases in China may also have raised fears of a labor shortage in the country, with tire makers slowing production.
Mainland China on Friday reported more than 1,000 new local COVID-19 infections, its highest daily number since Beijing contained its first national outbreak in early 2020, driven by a rise in asymptomatic infections amid the spread of the Omicron variant. Read more
Asian stocks extended their global slump on Friday, after the fastest US inflation in four decades boosted expectations for more aggressive rate hikes, and Chinese stock markets slumped on corporate regulatory concerns American listed on the continent. Read more
Japan’s benchmark Nikkei stock average (.N225) recorded its worst week since late November and fell around 2.1% on Friday.
Japanese household spending rose in January, but business sentiment deteriorated in the first quarter as rising raw material costs weighed on corporate margins, leaving the country’s resource-scarce economy struggling. hard work. Read more
The rubber contract on the Shanghai futures market for May delivery fell 280 yuan to end at 13,825 yuan ($2,187.85) a ton.
Rubber stocks in warehouses monitored by the Shanghai Futures Exchange rose 0.4% from last Friday, the exchange said.
The first-month rubber contract on the Singapore Stock Exchange’s SICOM platform for delivery in April last traded at 176.9 US cents per kg, down 1.7%.
SINGAPORE, March 11 (Reuters) – ($1 = 116.7600 yen)