SINGAPORE: Japanese rubber futures rose on Thursday, buoyed by a soft yen and rising crude oil prices, although lacklustre Chinese economic data capped the gains.
The Osaka Exchange (OSE) rubber contract for April delivery was up 2.4 yen, or 0.9%, at 258.6 yen ($1.72) per kg at closing.
The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 60 yuan, or 0.4%, at 14,210 yuan ($1,941.63) per metric ton.
The Japanese yen was last up 0.4% against the dollar, but remained on the weaker side of 150 per dollar.
The Japanese currency slid to a one-year low of 151.74 per dollar earlier this week in the wake of the Bank of Japan’s monetary policy decision. A weaker Japanese currency makes yen-denominated assets more affordable for buyers holding foreign currency.
Japan’s benchmark Nikkei average closed up 1.1%. Japanese Prime Minister Fumio Kishida said the government will spend over 17 trillion yen ($113 billion) on a package of measures to cushion the economic blow from inflation.
Oil gained more than 1% on Thursday to snap its three-day decline as risk appetite returned to financial markets after the US Federal Reserve kept benchmark interest rates on hold.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
China’s factory activity unexpectedly contracted in October, two surveys showed this week, renewing concerns over the state of the country’s sprawling manufacturing sector and its fragile economic recovery at the start of the fourth quarter.
The front-month rubber contract on the Singapore Exchange’s SICOM platform for December delivery last traded at 145.1 US cents per kg, up 0.6%.
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