SINGAPORE: Japanese rubber futures ended higher for a third consecutive session on Wednesday as automotive production expansion plans and a weaker yen lifted sentiment.
The Osaka Exchange (OSE) rubber contract for July delivery closed up 4.8 yen, or 1.69%, at 288 yen ($1.91) per kg. China’s BYD will set up a new electric vehicle factory in Mexico, Nikkei reported on Wednesday, as it aims to establish an export hub to the United States. India’s two-wheeler segment witnessed good growth in January as the rural market continues to recover, while commercial vehicles are likely to see good off-take in the next two months, India’s auto industry body said on Wednesday.
US consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare. The yen had weakened past the key 150-per-dollar level for the first time this year on Tuesday following surprisingly hot US inflation figures overnight, spurring Japan’s top currency diplomat to hint at the risk of intervention if “rapid,” “speculative” yen declines continue.
A weaker currency makes yen-denominated assets more affordable for overseas buyers. Japan’s benchmark Nikkei average closed 0.69% lower. Oil prices slipped in Asian trade on Wednesday after a US industry group reported crude stocks rose more than expected last week and as investors reined in expectations for interest rate cuts by the US Federal Reserve.
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