TOKYO: Japanese rubber futures snapped a three-day losing streak on Wednesday, after hitting a four-week low in the previous session, as investors looked for bargains ahead of the U.S. Federal Reserve’s policy update.
The Osaka Exchange rubber contract for July delivery finished 2.1 yen higher at 239.0 yen ($2.1) per kg. The new benchmark gained 5.8 yen, or 2.5%, from Tuesday’s close of June contract, the previous benchmark.
The OSE’s January contract expired at 228.2 yen per kg on Tuesday.
The rubber contract on the Shanghai futures exchange for May delivery rose 45 yuan to finish at 14,360 yuan ($2,273) per tonne. The benchmark also bounced back from a four-week low hit in the previous session.
The Fed ends a two-day policy meeting later in the day, with market players anxiously awaiting further clues on the timing and pace of interest rate hikes, as well as how the central bank will go about slimming down its almost $9 trillion balance sheet.
Rubber markets shrugged off a weaker economic outlook by the International Monetary Fund, which cut its economic forecasts for China, the United States and the global economy on Tuesday.
The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 182.0 U.S. cents per kg, up 3.9%.
Toyota Motor Corp plans to produce a record 11 million cars in fiscal 2022, according to a person familiar with the matter.
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