SINGAPORE/BEIJING: Japanese rubber futures rebounded from earlier losses to close higher on Thursday, driven by a stronger Nikkei that boosted investor confidence, while optimism regarding the country’s economic recovery also lent support.

The rubber contract for August delivery on the Osaka Exchange (OSE) closed up 2.8 yen, or 0.81%, at 349.3 yen ($2.31) per kg. The rubber contract for May delivery on the Shanghai Futures Exchange (SHFE) fell 485 yuan to finish at 14,940 yuan ($2,075.29) per metric ton.

Japan’s benchmark Nikkei average closed 2.03% higher, notching a record closing high.

Bank of Japan’s (BOJ) Governor Kazuo Ueda said the central bank would continue to support the economy by maintaining accommodative monetary conditions for the time being. The yen strengthened 0.17% against the dollar, reversing some of its significant losses following the BOJ’s policy shift.

Confidence among large Japanese companies rebounded to a three-month high in March, while the service-sector sentiment hit a seven-month high, a Reuters poll showed, indicating growing optimism among businesses for a recovery in Japan.