SINGAPORE: Japanese rubber futures extended gains for a second session on Thursday amid a weaker yen, while favourable domestic factory data and stronger equities boosted investor sentiment.
The Osaka Exchange (OSE) rubber contract for October delivery closed up 1.7 yen, or 0.52%, at 327.9 yen ($2.09) per kg to hit a three-session high.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 55 yuan to finish at 14,865 yuan ($2,051.93) per metric ton. The yen languished just above a three-week low despite the continued threat of intervention by Japanese officials. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Japan’s benchmark Nikkei average closed 1.26% higher. Japan’s factory activity crept into expansion for the first time in a year in May, a business survey showed, as manufacturing gathered pace after months of weakness.
Oil prices eased for a fourth straight session on Thursday after the minutes of a US Federal Reserve meeting revealed discussions of a further tightening of interest rates if inflation remained sticky, a move that could hurt oil demand.
Some of the steep US tariff increases on an array of Chinese imports, including electric vehicles and their batteries, computer chips and medical products, will take effect on Aug. 1, the US Trade Representative’s office said.
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