TOKYO: Japanese rubber futures rose on Wednesday to a one-month high on growing hopes that easing COVID restrictions in China will boost demand in the world’s top consumer, while investors awaited the Bank of Japan’s policy decision.
The Osaka Exchange rubber contract for June delivery was up 1.0 yen, or 0.4%, at 228.1 yen ($1.8) per kg, as of 0222 GMT. It had touched the highest since Dec. 20 of 228.8 yen earlier in the session.
The rubber contract on the Shanghai futures exchange for May delivery was up 150 yuan, or 1.1%, at 13,390 yuan ($1,976) per tonne, after hitting the highest since Oct. 10 of 13,435 yuan earlier in the session. China’s gross domestic product expanded 3% in 2022, missing the official target of “around 5.5%” and marking its second-worst performance since 1976. But the data still beat analysts’ forecasts after China rolled back its zero-COVID policy in December.
At the World Economic Forum in Davos, China’s Vice-Premier Liu He on Tuesday welcomed foreign investment and declared his country open to the world after three years of COVID isolation. The US dollar steadied on Wednesday, while the yen slipped as investors eagerly awaited the BOJ’s policy decision, which could set the stage for Tokyo to end its ultra-easy monetary policy.
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