Japan futures rise as tyre manufacturing resumes; equity selloff weighs

By Reuters News

By Emily Ou Yong

Oct 19 (Reuters) - Japanese rubber futures rose on Monday as tyre makers in top consumer China gradually resumed production and prices rebounded from last week's pullback from overbought levels, though a selloff in Tokyo equities limited gains.

  • The Osaka Exchange (OSE) rubber contract for March delivery , was up 3.8 yen, or 0.84%, at 454.1 yen ($2.88) per kg as of 0230 GMT

  • The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 55 yuan, or 0.28%, to 19,650 yuan ($2,940.60) per metric ton

  • The most active November butadiene rubber contract on the SHFE lost 20 yuan, or 0.12%, to 16,130 yuan per metric ton

  • The OSE contract fell 2.1% last week, correcting from overbought conditions following recent sharp rallies amid quiet trading, with the broader uptrend remaining intact, Japan Exchange Group said in a report on Monday

  • Tyre manufacturers are gradually resuming production, lifting overall capacity utilisation, though persistently high raw material costs led some manufacturers to keep output under control, said analysts from broker Chaos Ternary Futures in a note

  • Rising inventories have also curbed purchasing appetite, the analysts said

  • Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.4% week-on-week, the exchange said on Friday

  • Japan's Nikkei .N225 share average tumbled on Monday as a selloff in US technology stocks and rising oil prices fuelled concerns about inflation and higher interest rates .T

  • Weakness in global equities and growing concerns over AI-related stocks, particularly semiconductor shares, shadowed market sentiment, said Japan Exchange Group

  • The front-month rubber contract on Singapore Exchange's SICOM platform for January delivery last traded at 252.1 US cents per kg, up 0.2%

($1 = 157.9200 yen)

($1 = 6.6823 Chinese yuan)

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