SINGAPORE: Japanese rubber futures rose on Wednesday after a substantial dip in the previous session, even as the Nikkei ended lower and Asian stocks slumped.
The Osaka Exchange (OSE) rubber contract for March delivery closed up 1.2 yen, or 0.5%, at 233.7 yen ($1.57) per kg.
Japan’s benchmark Nikkei average closed down 2.28%, touching a more than four-month low on Wednesday, tracking Wall Street declines overnight after U.S. Treasury yields surged to fresh 16-year peaks.
Japan’s service activity in September expanded for the 13th month but at the slowest pace since the start of the year, a private survey showed, a worrying sign as the sector has been a key driver of economic growth amid weakness in manufacturing.
The yen was sitting barely on the stronger side of 150 per dollar on Wednesday, after a surge in the previous session stoked speculation that Japanese authorities could have intervened to support the currency. The yen last traded marginally lower at 149.16 per dollar.
Asian stocks sank to 11-month lows on Wednesday as an ongoing rout in global bond markets saw U.S. yields reach 16-year highs, challenging equity valuations and souring appetite for risk assets in general.
Oil edged lower on Wednesday ahead of a panel meeting of OPEC+ ministers, as the market weighed expectations of supply tightness against fears that high interest rates could reduce fuel demand.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 140 U.S. cents per kg, up 0.2%.
China’s financial markets are closed until Oct. 6 for the Golden Week holiday. Trading will resume on Oct. 9.
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