SINGAPORE: Japanese rubber futures rallied on Tuesday, tracking gains in the Shanghai market and stronger domestic equities, as market sentiment remained upbeat on hopes for China’s economic reopening despite a recent jump in COVID-19 cases.

The Osaka Exchange rubber contract for April delivery was up 4.8 yen, or 2.2%, at 219.3 yen ($1.50) per kg, as of 0200 GMT. The rubber contract on the Shanghai futures exchange for January delivery was up 285 yuan, or 2.3%, at 12,565 yuan ($1,737) per tonne.

Japan’s benchmark Nikkei share average opened 0.69% higher. Japanese households ramped up spending in September from a year earlier to mark a four-month growth streak, as shoppers enjoyed their first summer without corona virus curbs since before the pandemic. Mainland China’s Health Commission reported 7,691 new corona virus cases for Nov. 7, compared with 5,643 new cases a day earlier.

Past months have seen growing concerns over slowing rubber demand in China as the country struggles with a property crisis, heat waves disrupting production, and extended lockdowns hitting industrial activity and consumption.