SINGAPORE: Japanese rubber futures rose on Friday after two sessions of losses, buoyed by reports of inflation ticking up for the first time in four months, though the strengthening yen limited gains.
The Osaka Exchange (OSE) rubber contract for April delivery was up 1.4 yen, or 0.5%, at 261.4 yen ($1.75) per kg as of 0200 GMT.
For the week, however, the benchmark contract has fallen 1.8%, set for its first week of downturn after two consecutive weeks of increases.
The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 35 yuan, or 0.3%, at 13,920 yuan ($1,930.36) per metric ton.
Japan’s core consumer price growth picked up slightly in October, after easing the previous month, reinforcing investors’ views that stubborn inflation may push the Bank of Japan (BOJ) to roll back monetary stimulus before long.
The country’s factory activity shrank for a sixth straight month in November, while modest growth in the service sector was little changed, a business survey showed, highlighting the fragility of the economy amid soft demand and inflation.
The Japanese yen strengthened 0.04% to 149.49 per dollar. The Asian currency has slowly crawled away from the near 33-year low of 151.92 it touched at the start of last week and is up 1.5% for the month.
Japan’s benchmark Nikkei average opened up 0.9%.
Asian shares were dragged lower by China amid little guidance from Wall Street which was closed for a holiday, while the dollar remained on the back foot as investors bet U.S. rates have peaked.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded flat at 145.9 U.S. cents per kg.
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