RUBBER-Japan futures little changed as China auto demand offsets stronger yen

Oct 16 (Reuters) – * Japanese rubber futures held steady on Thursday, as traders balanced robust demand from China's auto sector against the pressure of a stronger yen. * The Osaka Exchange (OSE) rubber contract for March delivery was up 0.06% at 312 yen ($2.07) per kg, as of 0225 GMT. * The rubber contract on Shanghai Futures Exchange (SHFE) for January delivery was flat at 14,850 yuan ($2,084.77) per metric ton. * Most-active November butadiene rubber contract on SHFE gained 2.22%, to 11,045 yuan per metric ton. * Swedish truckmaker Scania opened its first fully-owned factory in China, which is expected to reach a production capacity of 50,000 vehicles, nearly double what its Brazilian plant produced last year. * The strong growth in automobile production and sales has driven up demand for tyres, which is expected to push up spot prices, said Chinese financial information site Tonghuashun Information. * The yen firmed to a one-week high of 150.52 per dollar after the Japanese parliament failed to set a date for its vote on a new prime minister. * A stronger currency makes yen-denominated assets less affordable to overseas buyers. * Oil prices rose around 1% after U.S. President Donald Trump said that India promised to stop buying Russian oil. * Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. * China's new bank loans in September increased less than expected, largely due to seasonal factors which may mask underlying weak credit demand, as the country struggles to reverse a prolonged property downturn and address industrial overcapacity. * The front-month rubber contract on Singapore Exchange's SICOM platform for November delivery last traded at 173.4 U.S. cents per kg, up 0.7%. ($1 = 150.6500 yen) ($1 = 7.1231 Chinese yuan) (Reporting by Lucas Liew; Editing by Harikrishnan Nair)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)