SINGAPORE: Japanese rubber futures ended a four-day losing streak on Monday, tracking a supply-driven boost in the Shanghai market and a softer yen.
Osaka Exchange’s rubber contract for October delivery finished up 3.6 yen, or 1.7%, at 212.5 yen ($1.57) per kg, its biggest daily jump since May 1.
The rubber contract on the Shanghai futures exchange (SHFE) for September delivery rose 335 yuan, or 2.8%, to finish at 12,305 yuan ($1,780.21) per tonne; the contract had climbed more than 3% earlier in the session. Japan’s benchmark Nikkei average closed 0.81% higher. Rubber inventories in warehouses monitored by SHFE fell 1% from a week earlier, the exchange said last Friday.
China’s central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged on Monday, as expected, but markets expect monetary easing may be inevitable in the coming months to support the economic recovery.
The Japanese yen weakened 0.20% against the dollar to 135.99. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Japan’s wholesale inflation slowed for a fourth straight month in April as rises in raw material costs moderated, data showed on Monday, suggesting that consumer inflation will begin to ease back towards the central bank’s 2% target.
Asian stocks were cautiously higher on Monday as investors braced for the release of China’s industrial and retail data, while awaiting a host of US Federal Reserve officials to speak to vindicate market pricing of rate cuts this year.
The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 137.7 US cents per kg, up 0.7%.
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