TOKYO: Japanese rubber futures climbed on Friday, tracking a strong rubber market in Shanghai, while a rally in Tokyo stocks also fuelled hopes for firmer demand for the tyre-making material.
The Osaka Exchange (OSE) rubber contract for August delivery finished 6.5 yen, or 1.9%, higher at 349.5 yen per kg. The contract ended the week nearly unchanged. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 115 yuan to finish at 16,940 yuan per metric ton.
Japan’s Topix index climbed to an eight-month high, as financials gained following stronger-than-expected inflation data, which fuelled expectations for interest rate hikes by the Bank of Japan. “The market rebounded on its own as it was oversold,” a Tokyo-based dealer said.
“Higher Japanese equities also improved market sentiment,” he added, predicting that the OSE could edge up toward 355 yen next week, though lingering concerns over weaker economic growth in China may cap gains. The yen traded at around 149.38 against the US dollar, compared with 149.75 yen on Wednesday afternoon, making yen-denominated assets less affordable to overseas buyers.
The Japanese financial markets were closed on Thursday due to a national holiday. Oil prices rose and were set for second consecutive weekly gains, as fresh US sanctions on Iran and a new plan from the Organization of Petroleum Exporting Countries and its allies (OPEC+) to cut output raised bets on tighter supply.
Natural rubber often takes direction from oil as it competes for market share with synthetic rubber, which is made from crude oil. The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 196.7 US cents per kg, down 0.5%.
Comments
Comments are closed for this article.