TOKYO: Japanese rubber futures jumped to their 3-month highs on Friday as a rally in Tokyo stock market and upbeat shares in China lifted investors’ risk appetite, while hopes for new economic stimulus by Japan’s new government lent support.
The Osaka Exchange rubber contract for March delivery was up 7.5 yen, or 3.5%, at 221.6 yen ($2.0) per kg as of 0233 GMT. It hit 233.1 yen earlier in the session, its highest since June 30.
The benchmark was headed for a weekly gain of about 5%, following a similar rise last week.
Japan’s benchmark Nikkei average was up more than 2% on Friday while Chinese shares were upbeat after returning from a one-week holiday.
Japanese Prime Minister Fumio Kishida instructed his cabinet on Friday to compile an economic package after the general elections to ease the pain from the coronavirus pandemic, Finance Minister Shunichi Suzuki said.
The rubber contract on the Shanghai futures exchange for January delivery was up 300 yuan, or 2.1%, at 14,355 yuan ($2,226) per tonne on Friday, as they resumed trading after being closed for the National Day holiday.