Osaka rubber futures slip as yen firms and Tokyo stocks fall

what happened

Osaka Exchange rubber futures for March delivery slipped on Friday, shedding 6.1 yen, or 1.35%, to 445.9 yen ($2.84) per kg by 0155 GMT, according to Reuters. The contract is down 0.98% so far this week. The move came as a firmer yen and a drop in Tokyo stocks weighed on sentiment.

In Shanghai, the January rubber contract was unchanged at 19,660 yuan ($2,946.02) a metric ton, while the most active December butadiene rubber contract gained 270 yuan, or 1.72%, to 15,940 yuan. Thailand's RSS3 smoked sheet fell 0.55% to 95.83 baht per kg, and block rubber dropped 1.21% to 88.47 baht.

The yen touched its firmest level in more than a month, rising 0.3% to 156.28 per dollar as investors sought safe havens amid renewed risk aversion. The Nikkei 225 opened lower, down 1.71% at 61,832.66, following a tech-led sell-off on Wall Street overnight. Chinese tyre makers ran their plants harder: semi-steel utilization reached 64.78% as of October 22 from 60.43% a week earlier, and all-steel rose to 57.7% from 52.22%, Qinrex data showed.

why it matters

For rubber, the stronger yen makes Japanese-listed assets pricier for overseas buyers, while higher tyre output in China points to steadier demand from the largest consumer. The SGX SICOM January contract rose 0.8% to 250.9 US cents per kg, showing that not every market moved lower.

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