RUBBER-Japan futures ease on firmer yen, snap 4-day rally

BY Reuters | ECONOMIC | 12/11/25 04:54 AM EST

(Recasts with closing prices)

TOKYO, Dec 11 (Reuters) -

* Japanese rubber futures eased on Thursday, snapping a four-day rally as a stronger yen against the U.S. dollar prompted some selling, while traders booked profits after the U.S. Federal Reserve cut interest rates as expected.

* The Osaka Exchange (OSE) rubber contract for May delivery finished 0.8 yen, or 0.2%, lower at 329.6 yen ($2.1) per kg, reversing course after earlier gains.

* The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 5 yuan to settle at 15,185 yuan ($2,151) per metric ton.

* The yen was at 155.98 against the U.S. dollar, compared with 156.69 yen in late Wednesday Asia trade.

* A stronger currency makes yen-denominated assets less affordable to overseas buyers.

* Also weighing on the rubber market, Japan's Nikkei share average fell 0.9% on Thursday.

* A sharply divided Fed cut interest rates on Wednesday but signalled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of a job market showing signs of softening, inflation that "remains somewhat elevated" and an economy it sees picking up steam next year.

* A Fed rate cut boosted hopes for stronger rubber demand by supporting consumption.

* The World Bank on Thursday said China's economy held firm in the third quarter of 2025, bringing year-to-date GDP growth to 5.2% year on year.

* Oil prices slid on Thursday as investors shifted focus back to Russia-Ukraine peace talks and monitored potential fallout from a U.S. seizure of a sanctioned tanker off the coast of Venezuela.

* The front-month rubber contract on Singapore Exchange's SICOM platform for January delivery last traded at 172.3 U.S. cents per kg, down 0.1%. ($1 = 155.9700 yen) ($1 = 7.0580 Chinese yuan renminbi) (Reporting by Yuka Obayashi; Editing by Mrigank Dhaniwala and Harikrishnan Nair)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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