Japanese rubber futures jump

SINGAPORE: Japanese rubber futures jumped on Monday, tracking gains in the Shanghai market and as a weaker yen against the dollar prompted fresh buying.

Osaka Exchange’s rubber contract for January delivery finished up 4.9 yen, or 2.2%, at 232.6 yen ($1.72) per kg, marking its largest single-day gain since June 9.

The rubber contract on the Shanghai futures exchange for September delivery rose 255 yuan to finish at 12,255 yuan ($1,812) per tonne.

“The movement in the markets today can be traced to the lockdown in Hainan as buyers are scrambling to secure materials due to the potential impact of reduced production,” said a Singapore-based trader.