TOKYO: Japanese rubber futures rose on Thursday for a fourth straight session, hitting a six-month high on growing hopes for demand recovery as automobile output picks up from a chip shortage-led slump, while the yen’s fall prompted buying.

Osaka Exchange’s rubber contract for May delivery finished 7.7 yen, or 4.0%, higher at 256.7 yen ($2.2) per kg. It touched 257.5 yen, the highest since May 28, earlier in the session.

Honda Motor Co last week said its Japanese car factories will return to normal operations in December, having worked at about 90% capacity this month because of the chip shortage and supply disruptions from COVID-19 lockdowns overseas.

Toyota Motor Corp <7203.T,> the world’s top-selling automaker, this month said it would begin in December to make up for production lost from supply shortages, with factories in Japan returning to normal for the first time in seven months.

The dollar was close to a five-year peak against the yen after data showed that US consumer spending increased more than expected in October. A weaker yen makes yen-denominated assets more affordable for buyers with other currencies.

The OSE’s November contract expired at 229.2 yen on Wednesday.

The rubber contract on the Shanghai futures exchange for May delivery rose 200 yuan to finish at 15,755 yuan ($2,467) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 180.6 US cents per kg, up 0.3%.