SINGAPORE: Japanese rubber futures hit a 13-year peak on Wednesday, boosted by the Chinese government’s announcement of additional stimulus measures.

The Osaka Exchange (OSE) rubber contract for February delivery closed up 2 yen, or 0.52%, at 387 yen($2.69) per kg. The contract hit an intraday high of 400 yen, its highest since April 25, 2011.

The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery ended up 540 yuan, or 3.04%, at 18,300 yuan ($2,607.21) per metric ton, its highest since March 20, 2017.

The current abnormal rally in futures exchanges is driven by speculative funds as they cheer China’s stimulus measures, said Jom Jacob, chief analyst at analysis firm What Next Rubber. Investors consider the measures to have the potential to lift demand for natural rubber, he said.

China’s central bank lowered the cost of its medium-term loans to banks on Wednesday, in line with efforts for an economic stimulus.

The most active October butadiene rubber contract on the SHFE closed up 250 yuan, or 1.61%, at 15,775 yuan ($2,247.47) per metric ton.

Top rubber producer Thailand’s meteorological agency warned of heavy to very-heavy rains that may cause flash floods from Sept. 25 to Oct. 1.

The yen eased slightly to 143.32 per dollar.

A stronger yen makes yen-denominated assets less affordable to overseas buyers.