SINGAPORE/TOKYO: Japanese rubber futures rose for a fourth straight session on Thursday, as stronger domestic equities and a soft yen helped boost sentiment, although weak GDP data and lower oil prices capped gains.
The Osaka Exchange (OSE) rubber contract for July delivery closed up 0.8 yen, or 0.28%, at 288.8 yen ($1.92) per kg. The benchmark Nikkei average closed up 1.21% at 38,157.94, nearing its record intraday high of 38,957.44 in December 1989.
The yen edged higher at 150.09 against the dollar, but still hovered near the key 150 level. The yen fell through the key 150-per-dollar level for the first time this year on Tuesday, following surprisingly hot US inflation figures, spurring Japan’s top currency diplomat to hint at the risk of intervention if “rapid”, “speculative” declines continue.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. A joint venture set up by Japan’s Sony Group and Honda Motor will introduce three electric vehicle models by the second half of this decade, the Nikkei business daily reported on Wednesday.
Japan’s economy unexpectedly contracted 0.4% on an annualised basis in October-December following the previous quarter’s contraction, as consumption of clothing and eating out caused a decline in private consumption, the Cabinet Office said.
Oil prices fell after a larger-than-expected jump in US crude inventories, raising demand concerns in the top oil consuming nation. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Mainland China’s financial markets are closed for the Lunar New Year holidays and will resume trade on Monday, Feb. 19. The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 152.5 US cents per kg, down 0.07%.
Comments
Comments are closed.