SINGAPORE: Japanese rubber futures closed higher for the third straight session on Thursday, supported by an oil sell-off and a bullish economic outlook in China, the top consumer, while anticipation of potential tariffs from the Trump administration further contributed to the gains.
The Osaka Exchange (OSE) rubber contract for April delivery closed up 2.9 yen, or 0.79%, at 367.9 yen ($2.39) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 255 yuan, or 1.41%, to 18,285 yuan ($2,551.92) per metric ton.
Chinese trade data released Thursday showed outbound shipments grew at the fastest pace in over two years in October as manufacturers rushed inventory to major export markets in anticipation of further tariffs from the US and the European Union.
China will continue to implement a supportive monetary policy to help promote sustained economic recovery, Pan Gongsheng, governor of the People’s Bank of China, said on Thursday. The yen was up 0.09% at 154.5 per dollar, touching 154.715 earlier in the session, its lowest against the greenback since July 30.
A stronger currency makes yen-denominated assets less affordable to overseas buyers. Oil prices rose on Thursday following a sell-off triggered by the US presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger US dollar and higher inventories.
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