RUBBER-Japan futures slip as China slaps retaliatory tariffs after US duties come into effect

Reuters
02-04
RUBBER-Japan futures slip as China slaps retaliatory tariffs after US duties come into effect

Updates to market close

SINGAPORE, Feb 4 (Reuters) -

  • Japanese rubber futures extended declines to a second session on Tuesday as China announced tit-for-tat levies after U.S. President Donald Trump's tariffs came into effect, reigniting trade war tensions.

  • The Osaka Exchange (OSE) July rubber contract JRUc6, 0#2JRU: ended daytime trade 8.3 yen lower, or 2.12%, at 382.7 yen ($2.47) per kg.

  • An additional 10% tariff across all Chinese imports into the U.S. came into effect on Tuesday, after Trump repeatedly warned Beijing it was not doing enough to halt the flow of illicit drugs into the United States.

  • In response, China slapped tariffs on U.S. imports, renewing a trade war between the world's top two economies.

  • China's Finance Ministry said it would impose levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment, and some autos.

  • The new tariffs on U.S. exports will start on Feb. 10, the ministry said.

  • Still, Chinese stocks listed in Hong Kong surged on a boost from artificial intelligence and electric vehicle shares, shrugging off Sino-U.S. tariff news.

  • XPeng 9868.HK jumped 12.6% after the carmaker said it delivered a nearly three-fold increase in smart EVs in January year on year.

  • Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

  • Meanwhile, the U.S. dollar gained 0.3% to 155.24 yen JPY=EBS. USD/

  • A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/

  • Meanwhile, top rubber producer Thailand's meteorological agency said that the northeast monsoon will strengthen with isolated thunder showers in the South.

  • The March front-month rubber contract on the Singapore Exchange's SICOM platform STFc1 last traded at 193.3 U.S. cents per kg, down 1.4%.

($1 = 155.1800 yen)

(Reporting by Michele Pek; Editing by Rashmi Aich)

((michele.pek@thomsonreuters.com;))

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