SINGAPORE/TOKYO: Japanese rubber futures edged higher for a third straight session on Thursday, buoyed by a rally in Tokyo stocks and higher oil prices, although trading was subdued with the Shanghai market closed for a holiday.
The Osaka Exchange (OSE) rubber contract for September delivery closed up 1.5 yen, or 0.46%, at 327.3 yen ($2.16) per kg, the highest close since April 1.
Oil prices rose on concerns of lower supply as major producers are keeping output cuts in place and on signs of stronger economic growth in the US, the world’s biggest oil consumer.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Japan’s benchmark Nikkei average closed 0.81% higher. The Japanese yen traded at 151.66 against the dollar, near the levels seen in late Asia trade on Wednesday.
Japanese authorities likely won’t intervene in the currency market unless the yen plunges below 155 to the dollar, former top currency diplomat Hiroshi Watanabe said on Thursday. The Shanghai Futures Exchange is closed on April 4 and 5 for the Tomb-Sweeping Day holiday in China.
The People’s Bank of China will accurately and effectively implement prudent monetary policy, pay more attention to counter-cyclical adjustments and make efforts to expand domestic demand and boost confidence, it said on Wednesday.
The return of China’s key manufacturing index to positive territory for the first time in six months has sparked optimism that commodity demand from the world’s biggest buyer of natural resources is poised to accelerate. The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 161.9 US cents per kg, up 0.12%.
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