SINGAPORE: Japanese rubber futures climbed on Friday, tracking Shanghai gains and a softer yen to end higher for the week, although the benchmark contract was on track for its fifth straight month and quarter of declines.
The Osaka Exchange (OSE) rubber contract for December delivery strengthened 1.9 yen, or 0.9%, at 207.2 yen ($1.43) per kg as of 0200 GMT. The benchmark contract rose 0.6% for the week thus far, but contracted 0.4% and 1.3% for the month and quarter respectively. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery jumped 215 yuan, or 1.8%, at 12,110 yuan ($1,669.84) per metric ton. Japan’s benchmark Nikkei average opened down 0.50%. The yen weakened 0.02% versus the greenback to 144.82 per dollar. Investors are watching to see if the BOJ will intervene in the currency again, which last happened at around the 145 mark.
A weaker yen makes yen-dominated assets more affordable when purchased in other currencies. China’s manufacturing activity contracted for a third straight month in June, albeit at a slower pace, an official factory survey showed. In Japan, core consumer prices in Japan’s capital rose 3.2% in June from a year earlier, exceeding the central bank’s 2% target for the 13th straight month in a sign of broadening inflationary pressure, government data showed on Friday. Separate data showed factory output fell more than expected in May, underscoring risks to the export-reliant economy. Asian stocks eased on Friday after a set of strong US economic data bolstered the view that the Federal Reserve will likely keep interest rates higher for longer.
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 133.2 US cents per kg, up 2.1%.
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