Rubber prices weaker in trading today, Tuesday (31/10/2017), along with China's economic data is bellow expectation.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 1.53% or 3 points to 192.60 yen per kilogram (kg) at 10:35 pm.
Previously, rubber prices opened at a stagnant level of 195.60 yen per kg after trading Monday (30/10) ended down 2.44% or 4.90 points at 195.60 level.
"Bearish Chinese data and a stronger Japanese yen weighed on rubber prices," said Kazuhiko Saito, a Fujitomi analyst, as quoted by Bloomberg.
China's Purchasing Managers' Index (PMI) index fell to 51.6 in October, according to government data. This figure is lower than the Bloomberg survey which reached 52 and the position of September at 52.4.
Meanwhile, PMI figures for non-manufacturing sector reached 54.3, lower than the previous month's position of 55.4.
"Stricter environmental oversight has affected PMI in October," said Gao Yuwei, researcher at Bank of China Ltd. Institute of International Finance.
"However, strong industrial earnings last month indicate that manufacturing is going well.As winter approaches, factories in the north may have to reduce production due to pollution restrictions, but the effect will not be so serious as the overall contribution of manufacturing to GDP growth has declined," he continued .
Also pressing the price of rubber, the Japanese yen appreciated by 0.02% or 0.02 point to 113.16 yen per US dollar at 11:07 pm.
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