SINGAPORE: Japanese rubber futures opened higher for a third session on Tuesday, lifted by stronger-than-expected China GDP data, although weaker crude prices capped gains.
The Osaka Exchange (OSE) rubber contract for September delivery was up 1.7 yen, or 0.8%, at 212.5 yen ($1.58) per kg as of 0153 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was up 115 yuan, or 1.0%, at 11,925 yuan ($1,736.24) per tonne. Japan’s benchmark Nikkei average opened up 0.19%.
China’s economy grew at a faster-than-expected clip in the first quarter, official data showed on Tuesday, expanding 4.5% year-on-year, as policymakers move to bolster growth following the end of strict COVID-19 curbs in December.
Oil prices held steady in early trading on Tuesday after falling 2% in the previous session, with markets awaiting data from China, looking for signs of economic recovery and growth to offset weakening demand elsewhere.
Lower oil prices incentivise manufacturers to shift to synthetic rubber derived from oil, hindering the natural rubber market.
Asia’s share markets were in a cautious mode in early trade on Tuesday as global investors waited to see whether China recorded a major first-quarter bounceback from its punishing pandemic lockdowns that created an economic slowdown. The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 138.0 US cents per kg, up 0.4%.
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