SINGAPORE: Japanese rubber futures snapped a three-session losing streak on Wednesday, tracking gains in Shanghai market, as a weaker yen against the US dollar prompted fresh buying.
Osaka Exchange’s rubber contract for January delivery finished up 2.6 yen, or 1.2%, at 229.6 yen ($1.72) per kg.
The rubber contract on the Shanghai futures exchange for September delivery rose 70 yuan to finish at 12,070 yuan ($1,787) per tonne.
“The positive movement in the markets seem to be supported by a weaker yen,” said a Singapore-based trader.
“Although, investors are going to keep an eye out for any long-term ramifications of Speaker Pelosi’s Taiwan visit,” he added.
The US dollar was quoted around 133.18 yen, after bouncing back from an almost two-month low of 130.39 yen the previous session.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Japan’s benchmark Nikkei average closed 0.53% higher.
Stocks rose in volatile trading across Asia on Wednesday and the dollar pared early gains as investors weighed the potential fallout from US House Speaker Nancy Pelosi’s visit to Taiwan, which has angered China.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 151.8 US cents per kg, down 0.8%.
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