SINGAPORE: Japanese rubber futures edged up on Monday, tracking gains in the Shanghai market after a week-long Lunar New Year holiday, while a weaker yen lent support.

The Osaka Exchange rubber contract for July delivery was up 0.3 yen, or 0.1%, at 235.8 yen ($1.81) per kg as of 0200 GMT. The rubber contract on the Shanghai futures exchange for May delivery was up 195 yuan, or 1.5%, at 13,460 yuan ($1,996) per tonne.

Japan’s benchmark Nikkei share average opened up 0.01%. Rubber demand sentiment has been positive lately following China’s relaxation of its strict COVID-19 curbs, which had dampened consumption and industrial activity since the start of the pandemic. Lunar New Year holiday trips inside China surged 74% from last year after authorities’ scrapped COVID-19 travel curbs, state media reported on Saturday, though the number of journeys was still only half of pre-pandemic levels.

China’s cabinet said on Saturday it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported, at a time of cooling global demand as major economies teeter on the brink of recession. The US dollar was quoted around 130.23 yen, gaining about 0.3%.