RUBBER-Japan futures decline amid Trump tariffs on China, sluggish Beijing data

SINGAPORE, Feb 4(Reuters) -

• Japanese rubber futures extended declines to a second session on Tuesday as U.S. tariffs imposed on top consumer China are poised to begin, while sluggish Chinese factory growth weighed on investor sentiment.

• The Osaka Exchange (OSE) July rubber contract JRUc6, 0#2JRU: ended morning trade 3 yen lower, or 0.77%, at 388 yen ($2.50) per kg.

• U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, forestalling the onset of a trade war, though China still faces across-the-board tariffs of 10% beginning 0501 GMT on Tuesday.

• Trump warned he might increase tariffs on Beijing further.

• Moreover, Chinese factory activity grew at a slower pace in January, while staffing levels fell at the quickest pace in nearly five years as trade uncertainties increased, a private-sector business survey showed on Monday.

• Shares of Japanese and South Korean car makers and their suppliers led declines in Asia on Monday amid sweeping tariffs.

• Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

• Still, offshore Chinese stocks and the yuan pared losses on Monday, with optimism about domestic AI firms and possible stimulus measures from Beijing outweighing tariff concerns.

• Meanwhile, the U.S. dollar gained 0.4% to 155.35 yen JPY=EBS, with demand for Japan's safe-haven currency reduced by the twist in the trade war narrative. USD/

• A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/

• Japan's Nikkei .N225 rose 1.6%, though gains were smaller than Monday's losses.

• The northeast monsoon will strengthen with isolated thundershowers in the South, said top rubber producer Thailand's meteorological agency.

• The March front-month rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 196.5 U.S. cents per kg, up 0.2%.

($1 = 155.2200 yen)