RUBBER-Japan futures head for lowest weekly close in over three months

Oct 3 (Reuters) – * Japanese rubber futures fell for the sixth straight session on Friday, heading for their lowest weekly close since late June, as a stronger yen and slowing automobile production in China weighed on market sentiment. * The Osaka Exchange (OSE) rubber contract for March delivery was down 0.8 yen, or 0.27%, at 298.2 yen ($2.02) per kg as of 0140 GMT. * The contract has lost 3.87% so far this week. * The yen is on track for a weekly gain of 1.5% against the dollar, its largest since mid-May. * A stronger currency makes yen-denominated assets less affordable to overseas buyers. * Japan's Nikkei rose 0.75% in early trading, nearing the record high it reached last month, ahead of the weekend vote to select the next prime minister. * Oil prices rose slightly on Friday, though they remain on track for their steepest weekly decline in 3-1/2 months on expectations of OPEC+ output hikes despite oversupply concerns. * Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. * BYD's third-quarter sales fell 2.1% from a year earlier, marking the first quarterly decline in over five years for China's leading automaker. The company further cut production by 8.47% last month, continuing a trend of reduced output at its factories amid an intense price war that is pressuring profit margins. * Automobile sales could influence the intensity of automobile manufacturing, while lower automobile prices exert a downward pressure on rubber tyre prices. * Still, top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from October 6-8. * The front-month rubber contract on Singapore Exchange's SICOM platform for October delivery last traded at 171 U.S. cents per kg, up 0.1%. ($1 = 147.5000 yen) (Reporting by Lucas Liew; Editing by Sonia Cheema)

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