SINGAPORE: Japanese rubber futures edged higher for a third session on Tuesday, closing at its highest since April 3, as trading activity remained subdued due to Labour Day holidays in China.
Osaka Exchange’s rubber contract for October delivery finished 0.4 yen, or 0.2%, higher at 213.2 yen ($1.55) per kg. Japan’s benchmark Nikkei average closed up 0.12%. “Rubber is seeing a lacklustre range market due to lack of market participants during the holiday period,” said a Singapore-based trader, adding that demand has generally been priced in, so the market is watching supply mid-May onwards. The International Monetary Fund (IMF) raised Asia’s economic forecast on Tuesday as China’s recovery underpinned growth, but warned of risks from persistent inflation and global market volatility driven by Western banking-sector woes. Japan and South Korea held their first bilateral finance leaders’ meeting in seven years, while Asian finance leaders will debate ways to beef up regional safeguards to better address emergency funding needs during pandemics and natural disasters.
In April, factory activity in Japan contracted for a sixth straight month, while manufacturing shrank unexpectedly in China and pulled off a three-year low in the US. Asian shares wobbled in cautious trade on Tuesday as investors kept their focus on US banks and a series of data releases and central bank meetings this week, which began with a surprise rate hike in Australia.
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