The benchmark Tokyo rubber futures slipped on Monday as investors liquidated contracts ahead of Chinese economic data release to avoid risks, but firm oil prices and a weaker yen still lent support, dealers said.
The Tokyo Commodity Exchange rubber contract for September delivery was down 0.3 yen to settle at 233.2 yen ($2.27)per kg.
“Players just sold contracts ahead of China’s PMI data release. They would come back and buy rubber contracts again if the data is good,” said a Bangkok-based dealer.
Traders said China’s official manufacturing PMI survey due on Tuesday will be closely watched after a recent string of disappointing data pointed to a slowdown in the world’s second biggest economy.
However, dealers said TOCOM prices were still supported by weaker Japanese yen and firm oil prices.
The yen struggled to gain traction versus the dollar, staying at 102.84 yen on Monday as demand for the safe-haven currency waned amid hopes of more stimulus from China.
Brent crude traded at a near two-week high – above $107 a barrel on Monday – as simmering tensions between Russia and the West offset a rise in oil supply from OPEC’s second-largest producer Iraq.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 140 yuan to close at 15,745 yuan ($2,500) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery was last traded at 182.0 U.S. cents per kg, down 7.3 cents.