SINGAPORE: Japanese rubber futures rose on Thursday for a sixth consecutive session as a softer yen made yen-dominated assets more affordable when purchased in other currencies, while the lifting of China’s Shanghai lockdown fuelled hopes for firmer natural rubber demand.
The Osaka Exchange rubber contract for November delivery finished up 1.7 yen, or 0.7%, at 256.5 yen ($1.97) per kg, after hitting the highest since April 22 at 257.3 yen earlier in the session.
The dollar traded at 129.91 yen against 129.22 yen on Wednesday afternoon in Asia.
Since Shanghai just reopened, traders are yet to find out how tyre manufacturers in the city are doing, though they should be improving output, said a Singapore-based trader.
Rubber futures might hence receive some support from this increased demand, he added.
The rubber contract on the Shanghai futures exchange for September delivery was up 160 yuan to finish at 13,380 yuan ($2,005.16) per tonne, after hitting the highest since April 21 at 13,385 yuan earlier in the session.
China’s financial hub Shanghai emerged from two months of strict COVID-19 lockdown on Wednesday.
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 168.7 US cents per kg, up 0.7%.
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