SINGAPORE: Japanese rubber futures rose on Wednesday after a brief dip in the previous session, buoyed by a soft yen and a rise in crude prices, although weak manufacturing data in both Japan and China limited gains.
The Osaka Exchange (OSE) rubber contract for April delivery was up 1 yen, or 0.4%, at 256.2 yen ($1.69) per kg at closing. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery was up 10 yuan, or 0.1%, at 14,160 yuan ($1,934.61) per metric ton.
China’s factory activity unexpectedly contracted in October, two surveys showed this week, renewing concerns over the state of the country’s sprawling manufacturing sector and its fragile economic recovery at the start of the fourth quarter.
Likewise, Japan’s factory activity contracted for a fifth straight month in October, a survey showed, as subdued demand and inflationary pressures squeezed businesses.
The Japanese yen wobbled near 15-year lows on the euro and a one-year trough on the dollar, having slid on bets that a tweak of Japan’s yield control policy isn’t enough to close wide interest rate gaps that have pressured the currency for years.
Japan’s benchmark Nikkei average closed up 2.41%. Oil prices edged up in early Asian trade on Wednesday ahead of key global central bank meetings this week including the US Federal Reserve, as the market also closely watched the latest developments in the Israel-Hamas conflict.
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