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 JRUc6, 0#2JRU: 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 JPY=EBS is on track for a weekly gain of 1.5% against the dollar, its largest since mid-May. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Japan's Nikkei .N225 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. O/R
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 1211.HK 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 STFc1 last traded at 171 U.S. cents per kg, up 0.1%.
($1 = 147.5000 yen)
(Reporting by Lucas Liew; Editing by Sonia Cheema)
((Lucas.Liew@thomsonreuters.com;))