TOKYO: Japanese rubber futures rose on Wednesday, recovering from a 3-week low, as concerns over the resurgence in COVID-19 cases in top buyer China receded with a lower daily increase, while China’s healthy economic data also buoyed optimism.

Osaka Exchange’s rubber contract for July delivery finished 5.2 yen, or 2.3%, higher at 229.3 yen ($2.2) per kg. It touched the lowest since Jan. 4 of 222.1 yen earlier in the session.

The rubber contract on the Shanghai futures exchange for May delivery rose 65 yuan to finish at 14,310 yuan ($2,212) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 156.2 US cents per kg, up 0.8%. China recorded its lowest daily increase in COVID-19 cases in more than two weeks, suggesting aggressive measures implemented to curb a resurgence of the disease are working.

Profits at China’s industrial firms grew for the eighth straight month in December, suggesting a sustained recovery as the manufacturing sector rapidly emerged from its COVID-19 slump.

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