Rubber Futures in Japan Conclude Flat Amid Economic Concerns

Tokyo: Rubber futures in Japan remained unchanged on Thursday, as investors exhibited prudence due to anxieties surrounding a potential global economic slowdown. These fears were fueled by weak economic indicators from China, a primary consumer, and the Bank of Japan’s revised economic outlook.

The Osaka Exchange (OSE) rubber contract, set for delivery in October, saw a marginal increase of 0.1 yen, settling at 294.0 yen ($2.04) per kg. Notably, the contract experienced a decline of 15.8% throughout April.

Recent data unveiled a contraction in Chinese factory activity, hitting a 16-month high in April, intensifying appeals for additional economic stimulus.

The U.S. economy also experienced a contraction in the first quarter, marking the first such occurrence in three years. This downturn was largely attributed to a surge in imports as businesses endeavored to mitigate the impact of tariffs.

The Bank of Japan (BOJ) has maintained stable interest rates while significantly reducing its growth projections, indicating that uncertainties linked to U.S. trade tariffs and export challenges may prolong the current policy stance.

Japan’s factory activity has decreased for the tenth consecutive month in April, influenced by weakened international demand and concerns regarding U.S. trade tariffs, as indicated by a private-sector survey released on Thursday.

Conversely, Japan’s Nikkei share average experienced an increase on Thursday, extending gains after the BOJ’s revised growth and inflation forecasts suggested a delayed timeline for future interest rate increases.

It is important to note that China’s financial markets are currently closed from May 1-5 for a public holiday, with trading scheduled to resume on Tuesday, May 6. Similarly, Singapore’s financial markets are closed on Thursday in observance of Labour Day.