SINGAPORE; Japanese rubber futures rose to a two-week high on Friday, buoyed by a softer yen and yuan, although deflationary indicators in China limited the gains.
The Osaka Exchange (OSE) rubber contract for April delivery was up 2.2 yen, or 0.8%, at 264.7 yen ($1.75) per kg at closing.
The benchmark contract rose 2.4% this week, recording its steepest weekly gain since the week ended Oct. 13. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery was up 180 yuan, or 1.3%, at 14,330 yuan ($1,965.03) per metric ton.
Japan’s benchmark Nikkei average closed down 0.24%. China’s yuan weakened to a one-week low as the dollar firmed and on rising market expectations of imminent monetary easing. The Japanese yen last traded flat but stood at a one-year low at 151.38 yen per dollar.
Traders see the 150 threshold as a potential trigger for Japanese authorities to intervene in the currency market. A weaker yen makes yen-denominated assets more affordable for buyers holding foreign currency.
China’s consumer prices swung lower in October, as key gauges of domestic demand pointed to weakness not seen since the pandemic, while factory-gate deflation deepened, casting doubts over prospects of recovery.
Nissan Motor and Honda Motor said they expect higher profits this year than forecasted, a sign of how Japan’s automakers are benefitting from the weak yen and sales recovery.
Asian stocks fell to their lowest in a week on Friday, while the dollar was steady as elevated Treasury yields weighed on sentiment after hawkish comments from US Fed Chair Jerome Powell dashed expectations of a peak in interest rates.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 148.1 US cents per kg, up 0.1%.
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