By Ruth Chai
Feb 12 (Reuters) -
<ul>
<li>Japanese rubber futures extended their declines on Thursday, pressured by a stronger yen and a sharp drop in car sales in China, the world’s top auto manufacturer.</li>
<li>The Osaka Exchange (OSE) rubber contract for July delivery (JRUc6) (0#2JRU:) was down 0.7 yen, or 0.2%, at 349.7 yen ($2.29) per kg, as of 0158 GMT.</li>
<li>The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery (SNRv1) rose 50 yuan, or 0.3%, to 16,585 yuan ($2,403.10) per metric ton.</li>
<li>The most active March butadiene rubber contract on the SHFE (SHBRv1) fell 135 yuan, or 1.04%, to 12,830 yuan per metric ton.</li>
<li>The yen (JPY=EBS) steadied slightly below 153.05 per dollar on Thursday, up more than 2.6% since Prime Minister Sanae Takaichi’s landslide victory on Sunday. (USD/)</li>
<li>A stronger currency makes yen-denominated assets less affordable to overseas buyers. (FRX/)</li>
<li>Japan’s Nikkei (.N225) share average surged past the 58,000 mark for the first time, continuing a scorching rally since the election victory.</li>
<li>China’s car sales fell last month at the fastest pace in nearly two years as competition steepens in the cut-throat market where automakers are grappling with fading government subsidies, softening demand and tighter regulations.</li>
<li>Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.</li>
<li>Lower automobile prices, driven by fierce competition, exert a downward pressure on rubber tyre prices.</li>
<li>Meanwhile, Shanghai and Singapore rubber prices have remained firm due to high spot and breakeven prices, though trading volumes have reduced in the lead-up to the Lunar New Year next week, according to LSEG-compiled data.</li>
<li>The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery (STFc1) last traded at 194.1 U.S. cents per kg, up 0.6%.</li>
</ul>
($1 = 152.8800 yen)
($1 = 6.9015 yuan)

RUBBER-Japan futures drift lower on strong yen, weak Chinese auto sales