SINGAPORE: Japanese rubber futures rose on Tuesday, buoyed by firmer synthetic rubber prices and a rally in the domestic stock market, although gains were capped by a stronger yen.
The Osaka Exchange (OSE) rubber contract for December delivery was up 2.5 yen, or 0.79%, at 319.6 yen ($1.99) per kg. The September rubber contract on the Shanghai Futures Exchange (SHFE) closed up 145 yuan, or 1.0%, at 14,715 yuan ($2,023.71) per metric ton. The most active August butadiene rubber contract on the SHFE was up 255 yuan, or 1.72%, at 15,055 yuan ($2,070.47) per metric ton.
Japan’s Nikkei share average rose to a record close, with chip-related stocks following their US peers higher as investors awaited testimony from Federal Reserve Chair Jerome Powell for clues on the path of interest rates.
The yen held steady at 160.945 per dollar, finding some equilibrium this week after rebounding from Wednesday’s nearly 38-year trough of 161.96.
Japan’s central bank is due to announce a plan for quantitative tightening at its month-end policy meeting. It began two days of meetings with bond market participants on Tuesday about how to proceed without riling markets. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
Oil prices were little changed after a hurricane that hit a key US oil-producing hub in Texas caused less damage than markets had expected, easing concerns over supply disruption.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
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