TOKYO: Japanese rubber futures jumped on Monday as Shanghai futures rallied on encouraging Chinese service sector data, while a weaker yen against the US dollar also lent support.
The Osaka Exchange rubber contract for March delivery was up 6.1 yen, or 2.8%, at 227.1 yen ($2.02) per kg as of 0129 GMT. The benchmark was hear the highest since June 30 of 233.1 yen, hit on Friday.
The rubber contract on the Shanghai futures exchange for January delivery was up 420 yuan, or 2.9%, at 14,810 yuan ($2,300.65) per tonne on Monday.
Activity in China's services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on Friday, offering some support to a slowing economy.
The dollar ticked up to a 2-1/2-year high versus the yen on Monday after a soft US payrolls figure did little to alter market expectations the US Federal Reserve will announce it will start tapering its massive bond-buying next month.
The US dollar was quoted around 112.35 yen on Monday, against 111.90 yen on Friday. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.9% from last release on Sep 30, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 174.6 US cents per kg, up 2.2%.
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