SINGAPORE: Japanese rubber futures posted monthly gains for the first time in seven months on Thursday, helped by prospects of more stimulus and stabilising manufacturing data in China, and a weak yen. Osaka Exchange’s rubber contract for February delivery finished 1 yen, or 0.5%, higher at 214.2 yen ($1.47) per kg, and gained 6.8% for the month. The rubber contract on the Shanghai futures exchange for January delivery rose 40 yuan to finish at 13,330 yuan ($1,828.88) per metric ton. Japan’s benchmark Nikkei average closed up 0.9%. Japan’s factory output fell more than expected in July, data showed. China’s manufacturing activity contracted for a fifth straight month in August, but at a slower-than-expected pace, an official survey showed.

PMI data suggests a stabilisation in the manufacturing slump. With SICOM closed on Friday and a recent surge in the last two weeks, the rapid uptrend could suggest some profit-taking on Thursday, a Singapore-based trader said.

China will unblock financing channels of stocks, bonds and loans for private enterprises and support their listing and refinancing, the central bank said. The dollar’s pullback, along with the wariness of government intervention, has steadied the yen. It is 2.5% lower on the dollar this month and down 10% for the year but has found some traction around 146 yen per dollar.

A weaker yen makes assets denominated by the currency more affordable for overseas buyers. Asian shares were set for their worst month since February, with sentiment hurt by still-gloomy China factory readings, as investors awaited a barrage of US data that could add to bets that interest rates have peaked.

The front-month rubber contract on the Singapore Exchange’s SICOM platform for September delivery last traded at 132.5 US cents per kg, down 3.1%.