SINGAPORE: Japanese rubber futures extended gains on Wednesday, tracking a firmer Shanghai market, although traders remain cautious and await more cues from financial markets.

The Osaka Exchange (OSE) rubber contract for September delivery was up 1.5 yen, or 0.7%, to 206.5 yen ($1.55) per kg, as of 0211 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery rose 50 yuan, or 0.4%, to 11,730 yuan ($1,703.41) per tonne. Japan’s benchmark Nikkei average opened up 0.22%.

World Bank Group President David Malpass said on Monday that the lender had revised its 2023 global growth outlook slightly upward to 2% from a January forecast of 1.7%, but the slowdown from stronger 2022 growth will increase debt distress for developing countries. However, the International Monetary Fund warned on Tuesday that lurking financial system vulnerabilities could erupt into a new crisis and slam global growth this year, but urged member countries to keep tightening monetary policy to fight persistently high inflation.

Finance Minister Shunichi Suzuki said that Japan would chair a Group of Seven (G7) financial leaders’ meeting on Wednesday in Washington to discuss the global economy and financial markets, the strengthening of supply chains, and the Ukraine crisis.

Asian equities inched lower on Wednesday ahead of a crucial US inflation report that will likely influence the Federal Reserve’s monetary policy path, with markets wagering another hike in interest rates at the central bank’s next meeting.

The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 133.6 US cents per kg, down 0.4%.