SINGAPORE: Japan’s rubber futures inched higher on Friday and posted their fourth straight weekly jump, as Asian stocks rose and oil prices extended sharp gains after Russia invaded Ukraine. Sustained strength in raw material prices from top natural rubber producer Thailand also lent support.
The Osaka Exchange rubber contract for August delivery finished 2.3 yen, or 0.9%, higher at 261.3 yen ($2.27) per kg. It posted a 1.4% gain for the week. Asian stock markets rebounded following Wall Street’s surprising overnight reversal, as investors weighed the longer-term impact of tough Western sanctions against Russia after it unleashed troops, tanks and missiles on Ukraine.
Japan’s benchmark Nikkei share average rose about 2%. Oil prices jumped nearly 3% as Russia’s invasion of Ukraine stoked global supply concerns as markets brace for the potential impact of trade sanctions on major crude exporter Russia.
Synthetic rubber is derived from crude oil and a higher oil market serves as a driver for natural rubber prices as well. The natural rubber market also benefits from stronger oil prices as that could lead to a shift from synthetic rubber. The recovery in equity markets boosted rubber traders’ risk appetite following panicky markets on Thursday, a Singapore-based trader said.
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