SINGAPORE: Japanese rubber futures rose for the fourth straight session to touch a three-week high on Wednesday, buoyed by sustained demand from Chinese factories and optimistic sentiment stemming from strong industrial data and stimulus measures.
The Osaka Exchange (OSE) rubber contract for June delivery was 1.5 yen, or 0.6% higher at 251.1 yen ($1.76) per kg at closing. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was 55 yuan, or 0.4% higher at 13,925 yuan ($1,948.81) per metric ton.
“The recent market surge is influenced by stockpiling in China,” said a Singapore-based trader.
China’s industrial profits extended gains for a fourth straight month in November, even as weakening demand ate into business growth expectations, emboldening calls for more policy support.
China’s top planning body said on Saturday it had identified a second batch of public investment projects under a bond issuance and investment plan announced in October to boost the economy.
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