SINGAPORE: Japanese rubber futures delivered a weekly gain on Friday, driven by strong tyre manufacturer activity, although subdued China demand and a firmer yen capped gains.

Osaka Exchange’s rubber contract for October delivery finished 0.7 yen, or 0.3%, higher at 212.7 yen ($1.57) per kg, extending gains from the previous session.

The benchmark OSE contract strengthened 1.8% for the week. The rubber contract on the Shanghai futures exchange for September delivery fell 15 yuan to finish at 12,215 yuan ($1,767.19) per tonne.

“This week has been pretty range-bound both on physical and futures,” said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company. “Overall, China market is still quiet with traders having enough domestic stockpile to sell to buyers domestically, muting import demand.”

“On the international front, major tyre manufacturers were relatively active in the spot market, lending some support to any price drop this week,” she added. Data this week showed China’s economy lost momentum at the beginning of the second quarter, while Japan’s export growth hit its weakest pace in more than two years in April as China-bound shipments slumped.

The Japanese yen appreciated 0.45% against the dollar to 138.12, making yen-dominated assets less affordable when purchased in other units. Still, Japan’s core consumer inflation stayed well above the central bank’s 2% target in April and a key index stripping away the effects of fuel hit a fresh four-decade high, keeping alive expectation of a tweak to its massive stimulus this year.

Asian shares rose on Friday and the dollar hung near a two-month peak as increased hopes of a deal over the US debt ceiling, while Japan’s Nikkei jumped to highest in nearly 33 years. The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 136.0 US cents per kg, down 0.3%.