SINGAPORE: Japanese rubber futures climbed on Wednesday, as fears of a banking turmoil waned, while traders awaited the US Federal Reserve’s interest rate decision. The Osaka Exchange (OSE) rubber contract for August delivery was up 2.1 yen, or 1.0%, at 207.1 yen ($1.56) per kg as of 0203 GMT.
The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was up 15 yuan, or 0.13%, at 11,690 yuan ($1,699.50) per tonne. Japan’s benchmark Nikkei average opened up 1.31%. Shares of US regional lenders including battered First Republic Bank surged on Tuesday, as fears of a wider banking crisis abated and investors turned their focus to the Fed’s next move due later in the day.
The US Federal Reserve began a two-day meeting on Tuesday, with some top central bank watchers saying it could well pause further rate hikes given recent trouble among banks or even delay releasing new economic projections because the outlook is so clouded.
Japan’s government will allocate more than 2 trillion yen ($15 billion) from reserve funds in the current fiscal year’s budget for steps to cushion the economic blow from rising inflation, Chief Cabinet Secretary Hirokazu Matsuno said.
Asian shares staged a cautious bounce, as hopes that a global banking crisis would be averted warred with uncertainty over the outlook for US rates. The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 131.3 US cents per kg, up 0.5%.
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