SINGAPORE: Japanese rubber futures rose on Tuesday on the back of a weaker yen and an aggressive Chinese stimulus package, although gains were limited by soft economic data across Asia, particularly in top consumer China.
The Osaka Exchange (OSE) rubber contract for March delivery closed up 8.8 yen, or 2.18%, at 412.1 yen ($2.85) per kg. The Shanghai Futures Exchange is closed from Oct. 1 to 7 for the National Day holiday. Trading will resume on Tuesday, Oct. 8. The one-week holiday in China may see softened trading activity for the OSE contract, which still has room for further upside, Japan Exchange Group said in a report.
The yen fell nearly 0.5% to 144.34 per dollar after Federal Reserve Chair Jerome Powell pushed back overnight against bets of more supersized interest rate cuts.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
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