SINGAPORE: Japanese rubber futures rose on Tuesday, tracking stronger domestic equities and gains in the Shanghai market, as stronger-than-expected economic data from top buyer China lifted demand sentiment.
The Osaka Exchange rubber contract for June delivery was up 5.3 yen, or 2.4%, at 227.9 yen ($1.77) per kg as of 0200 GMT, hitting its highest since 20 Dec.
The rubber contract on the Shanghai futures exchange for May delivery was up 370 yuan, or 2.9%, at 13,345 yuan ($1,978) per tonne. Japan’s benchmark Nikkei share average opened up 0.36%.
Rubber demand sentiment has been mixed over recent months after China relaxed its strict COVID-19 restrictions, which was immediately followed by a fresh wave of infections.
China’s economy hit a bump in the fourth quarter, growing by 2.9% year-on-year, National Bureau of Statistics data showed on Tuesday, beating expectations but still underlining the toll exacted by a stringent “zero-COVID” policy.
China’s industrial output grew at a modest 1.3% pace last month year-on-year, easing from a 2.2% rise in November, as manufacturing activity was hit by the rampant spread of COVID infections that bound workers indoors.
Toyota Motor Corp on Monday said it could produce as many as 10.6 million vehicles this year, while warning of downward risk to its projection from the possible impact of issues such as parts supply shortages and COVID-19.
Asia shares mostly slipped on Tuesday ahead of Beijing’s expected release of weak fourth-quarter economic data, although investor sentiment about China’s rebound remained positive even as the global economy edges closer to recession.
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