SINGAPORE: Japanese rubber futures hit a more than five-month high on Thursday, helped by prospects of more stimulus in China and a softening yen, although weak manufacturing data weighed on trader sentiment.
The Osaka Exchange (OSE) rubber contract for February delivery was up 2.4 yen, or 1.1%, at 215.6 yen ($1.48) per kg, as of 0222 GMT, extending gains from the previous session.
The benchmark contract has gained nearly 8% so far in the month after a six-month losing streak.
The rubber contract on the Shanghai futures exchange (SHFE) forJanuary delivery was up 80 yuan, or 0.6%, at 13,370 yuan ($1,835.18) per metric ton.
Japan’s benchmark Nikkei average opened up 0.09%.
Japan’s factory output fell more than expected in July, data from the Ministry of Economy, Trade and Industry showed. Meanwhile, China’s manufacturing activity contracted for a fifth straight month in August, but at a slower-than-expected pace, an official factory survey showed.
Japanese rubber futures retreat on weak Shanghai market
China will unblock financing channels of stocks, bonds and loans for private enterprises and support their listing and refinancing, the central bank said.
The yen dropped 2.6% on the dollar this month, as investors figure interest rates are likely to stay low in Japan and high in the United States.
A weaker yen makes assets denominated by the currency more affordable for overseas buyers.
Asian shares were set for the worst month since February, with sentiment hurt by still-gloomy China factory activity, while investors were also cautious ahead of a barrage of U.S. data that could add to bets that interest rates have peaked.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 136.9 U.S. cents per kg, up 0.1%.
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