SINGAPORE: Japanese rubber futures inched higher on Monday, buoyed by optimism over a US debt ceiling deal that lifted Asian equities, while tighter inventories also lent support.
The Osaka Exchange (OSE) rubber contract for November delivery was up 0.5 yen, or 0.2%, at 210.0 yen ($1.55) per kg, as of 0212 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery was up 130 yuan, or 1.1%, at 11,920 yuan ($1,724.51) per tonne.
Japan’s benchmark Nikkei average opened up 2.02%, rising to its highest level since July 1990. Profits at China’s industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery.
Still, Asian shares and US stock futures rose, buoyed by the weekend deal by US President Joe Biden and congressional Republican Kevin McCarthy to suspend the government’s debt ceiling, ending a months-long stalemate and angst for investors.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.9 % from a week earlier, the exchange said on Friday. Likewise, rubber output may be affected in top-exporter Thailand as the southwesterly monsoon approaches. The National Water Command Centre (NWCC) issued flash flood warnings for some provinces in all regions from Saturday until Thursday (May 27 to June 1).
The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 133.6 US cents per kg, up 0.1%.
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