TOKYO: Japanese rubber futures climbed for a second day on Wednesday as a rally in Shanghai market prompted buying, though weaker-than-expected economic data and a resurgence in virus cases in top buyer China limited gains.
Osaka Exchange’s rubber contract for February delivery finished 1.0 yen, or 0.5%, higher at 204.9 yen ($1.9) per kg. The rubber contract on the Shanghai futures exchange for January delivery rose 100 yuan to finish at 13,775 yuan ($2,142) per tonne.
A burst of data out of China showed growth in its factory and retail sectors continued to falter in August with output and sales growth hitting one-year lows as fresh coronavirus outbreaks and supply disruptions threatened its economic recovery.
China’s COVID-19 outbreak in Fujian province, which has reported 152 local cases in five days, has prompted cities in other parts of the country to issue travel warnings ahead of major holidays, though state media warn against imposing blanket travel curbs.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 164.7 U.S. cents per kg, up 0.2%.