SINGAPORE: Japanese rubber futures edged up for a second straight session to a three-day closing high on Wednesday, amid stronger domestic equities and a weaker yen, while strong consumer confidence in the United States bolstered investor sentiment.

The Osaka Exchange (OSE) rubber contract for September delivery closed up 1.9 yen, or 0.6%, at 321.2 yen ($2.12) per kg, the highest close since Monday.

The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 280 yuan to finish at 14,470 yuan ($2,001.83) per metric ton. Japan’s finance minister issued his strongest warning to date on Wednesday about yen weakness as it fell to a 34-year low against the dollar, saying authorities could take “decisive steps”, language previously used before intervention.

Japan’s benchmark Nikkei average closed 0.9% higher. The weakening yen helped accelerate Japanese stock gains and boosted investor sentiment in the rubber market as it made yen-denominated assets more affordable for overseas buyers.

Orders for long-lasting US manufactured goods increased more than expected in February. The Conference Board said its consumer confidence index was little changed at from 104.8 in February to 104.7 in March.

“The data fit with early 2024 evidence of more cautious consumer spending. If sustained, that should support a return to greater demand/supply balance in the economy given the dominance of private consumption in growth,” ANZ said in its research report.