TOKYO: Japanese rubber futures rose to a five-week high on Monday as investors remained bullish on hopes of an economic recovery in top consumer China, although trade was thin due to the Lunar New Year holiday in east Asia.

The Osaka Exchange rubber contract for June delivery was up 1.6 yen, or 0.7%, at 229.9 yen ($1.8) per kg as of 0237 GMT. It hit the highest since Dec 19 of 230.2 yen earlier in the session.

China said last week the worst was over in its battle against COVID-19.

China’s declaration that it is open for business was welcomed by attendees at the World Economic Forum (WEF) as a likely boost to global growth, though many also expressed caution over how it could drive up global COVID cases and inflation.

China’s financial markets will be closed for a week for the Lunar New Year holiday, which officially started Jan. 21. The markets will resume trading on Monday, Jan. 30.

Singapore’s financial markets will be closed on Jan. 23 and Jan. 24 for a national holiday. Trading will resume on Wednesday, Jan. 25. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9% from a week earlier, the exchange said on Friday.