SINGAPORE: Japanese rubber futures slid to multi-month lows on Friday to end the week lower as US President Donald Trump’s sweeping tariffs on trading partners escalated trade war concerns and stoked fears of global recession.
The Osaka Exchange (OSE) rubber contract for September delivery closed down 10.6 yen, or 3.2%, at 320.7 yen ($2.20) per kg, losing 8.16% this week. Earlier in the session, prices hit 318.7 yen, the lowest since August 7, 2024.
US tariff policies have raised market concerns about tire demand and dampened the outlook for exports, Chinese financial information site Tonghuashun Information said. Chinese stock markets slumped on Thursday after Trump unveiled reciprocal tariffs that were particularly heavy on China and its main trading partners. Chinese imports were hit with a fresh 34% tariff, taking the total new levy to 54%, with Beijing vowing countermeasures. Meanwhile, Trump’s 25% auto tariffs will cover hundreds of billions of dollars worth of vehicles and auto parts imports annually.
Automobile sales could influence the intensity of vehicle manufacturing, which involves using rubber-made tyres. The Japanese Nikkei sank more than 4% and was set for a weekly decline nearing 10%, the sharpest drop in more than five years. The dollar weakened 0.31% to 145.65 yen after slumping 2.2% on Thursday.
A stronger currency makes yen-denominated assets less affordable to overseas buyers. The front-month rubber contract on the Singapore Exchange’s SICOM platform for May delivery last traded at 181.6 US cents per kg, down 2.1%. China’s financial markets were closed for a public holiday on the day. Trading will resume on Monday, April 7.
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