TOKYO: Japanese rubber futures jumped on Thursday, recovering from the previous day’s drop, as US President Donald Trump’s abrupt decision to pause tariffs for 90 days offered relief to investors.
The Osaka Exchange (OSE) rubber contract for September delivery finished 14.7 yen, or 5.2%, higher at 298.1 yen ($2.04) per kg.
The rubber contract on the Shanghai futures exchange for September delivery rose 470 yuan to finish at 14,975 yuan ($2,041) per metric ton. Following a days-long market rout that erased trillions of dollars from global stocks and jolted US Treasury bonds and the dollar, Trump on Wednesday announced a 90-day pause on many of his new reciprocal tariffs in a shock reversal.
Global shares surged and a manic bond selloff stabilised on Thursday.
Japan’s Nikkei share average jumped 9% on Thursday as investors scooped up beaten-down stocks after Trump declared an immediate 90-day tariff pause. But oil prices retreated nearly 3% on Thursday as fears of a deepening US-China trade war and possible recession eclipsed earlier relief created by Trump’s announced 90-day pause on sweeping tariffs against most countries.
Trump raised the tariff rate for China to 125%, effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday, deepening a trade standoff with the world’s second-largest economy.
China’s car exports will likely face greater-than-forecast pressure this year as US tariff hikes hit the economies of important overseas markets hard, potentially curbing consumer demand, a Chinese auto industry association said on Wednesday.
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