SINGAPORE: Japanese rubber futures ended at a six-week high on Friday, as Shanghai lifting COVID-19 lockdowns fuelled hopes of more robust natural rubber demand, while a stronger Tokyo stock market and domestic services data also boosted sentiment.
The Osaka Exchange rubber contract for November delivery ended up 3.3 yen, or 1.3%, at 259.8 yen ($2.00) per kg, after hitting its highest since April 22 at 260.2 yen earlier. It extended gains for the seventh consecutive session.
The benchmark posted a 4.8% weekly gain, its largest weekly percentage gain since the week ended Feb. 11.
Japan’s benchmark Nikkei share average closed up 1.3%.
Japan’s services sector activity grew at the fastest pace in half a year in May, as consumer sentiment recovered further following the easing of coronavirus curbs, though high energy and material costs pushed up input prices by a record rate.
OSE prices are posting a weekly gain due to the reopening of Shanghai and a decline in total COVID-19 cases in China, said a Singapore-based trader.
Tyre factories in Shanghai are running at higher capacity too, he added.
Chinese financial markets are closed from Friday for the three-day Dragon Boat Festival holiday. Markets will reopen on Monday.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1% from the previous week, the exchange said on Thursday. The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 168.0 US cents per kg, up 0.2%.
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