SHANGHAI: Japanese rubber futures rose on Friday, supported by a weaker yen and a rally in local stocks, though lower oil prices capped gains.
The Osaka Exchange (OSE) rubber contract for January delivery was up 1.7 yen, or 0.41percent, at 419.6 yen (USD2.62) per kg. It was little changed for the week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery was little changed at 16,375 yuan (USD2,427.40) per metric ton.
The most-active September butadiene rubber contract on the SHFE fell 335 yuan, or 2.59percent, to 12,595 yuan per ton.
The yen stayed under pressure after the Bank of Japan held rates steady, paring some of the sharp gains sparked by coordinated intervention overnight as markets tested Tokyo’s resolve to support the sagging currency.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
Japan’s Nikkei share average jumped 4percent, buoyed by an overnight rally on Wall Street after Microsoft issued forecasts that eased fears about the tech industry’s massive AI infrastructure spending. Oil prices fell as more supplies flowed through crucial maritime chokepoints despite a lack of major breakthroughs in talks between the United States and Iran.
Natural rubber often takes direction from oil prices 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 October delivery last traded at 212 US cents per kg, up 0.6percent as of 0700 GMT.
Comments