Osaka Exchange Rubber Contract Falls Amid Correction Fears

The Osaka Exchange's rubber contract for February delivery is down 1.1 yen, or 0.25%, to 441.5 yen (USD2.76) per kg after reaching multi-year highs.

Japanese equities are also lower as expectations of a Bank of Japan rate hike weigh on sentiment. The Nikkei share benchmark edged down on Monday.

The global natural rubber market remains in deficit, and the question for the second half is whether this tightens actual supply, given that purchasing has remained largely hand-to-mouth without a broad restocking cycle so far.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.5% week-on-week.