* Japanese rubber futures fell on Wednesday as prospects of
more
aggressive U.S. rate hikes reduced risk appetite, while a softer
yen and stabilising oil prices lent some support to the market.
* Osaka Exchange's rubber contract for August delivery finished 2.5 yen, or 1.1%, lower at 222.5 yen ($1.62)
per kg.
* The rubber contract on the Shanghai futures exchange for
May
delivery fell 145 yuan to finish at 12,290 yuan
($1,764.36) per tonne.
* Japan's benchmark Nikkei share average closed up
0.48%.
* Markets are selling after Fed's comments prompted
investors to
price in a 50 basis-point hike in interest rates, said a
Singapore-based trader.
* Coupled with the
lower-than-expected growth targets set by China at its annual National People's Congress (NPC), which signal a likely shrink in stimulus to the economy, it will be difficult for prices to rise, he added.
* The Japanese yen fell 0.3% against the dollar to
137.61
as of 0710 GMT.
* A weaker yen makes yen-denominated assets more affordable
when
purchased in other currencies.
* Similarly, oil prices steadied on Wednesday after the
market
tumbled in the previous session on fears that more aggressive
U.S. interest rate hikes would hit demand.
* The natural rubber market is hindered by weaker oil
prices, as
manufacturers are disincentivised from shifting away from
synthetic rubber derived from oil, driving natural rubber prices
down.
* Meanwhile, Asian shares were on track for their worst day
in a
month after hawkish comments from Federal Reserve Chair Jerome
Powell raised the possibility of the U.S. central bank returning
to large rate hikes to tackle sticky inflation.
* The front-month rubber contract on Singapore Exchange's
SICOM
platform for April delivery last traded at 136.2 U.S.
cents per kg, down 2.1%.
($1 = 137.6200 yen)
($1 = 6.9657 yuan )
(Reporting by Carman Chew; editing by Eileen Soreng)
For other physical rubber prices in Thailand, click on . For more details on Indonesian and Malaysian prices click on and .
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