SINGAPORE: Japanese rubber futures rose for a second session to hit a more-than-one-week high on Tuesday, tracking higher Shanghai futures, while a weaker yen also lent support.
The Osaka Exchange (OSE) rubber contract for December delivery closed up 8.3 yen, or 2.54%, at 335.5 yen ($2.10) per kg, the highest close since June 14.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 335 yuan to finish at 15,290 yuan ($2,105.45) per metric ton. Traders are trading on unsubstantiated market chatter in the backdrop of top consumer China’s stockpiling movements, prompting large movements in the SHFE, two Singapore-based traders said separately.
Japanese Chief Cabinet Secretary Yoshimasa Hayashi said on Tuesday authorities would respond appropriately to excessive currency volatility as the yen weakens towards the key 160-per-dollar level. A weaker currency makes yen-denominated assets more affordable to overseas buyers. While government officials have declined to comment on whether current market moves are excessive, traders are on high alert for any intervention from authorities.
Japan’s Nikkei share average rose on Tuesday to its highest close in more than two months, as investors shifted focus to value stocks from semiconductor and other high-tech stocks, while a weaker yen also lent support to export-related shares. Retailers in China face a daunting near-term future after a disappointing mid-year online shopping festival that also clouded the recovery prospects of the world’s second-largest economy.
Canada said it was considering the imposition of tariffs on Chinese electric vehicles, as it seeks to align itself with allies against what they see as a heavily subsidized Chinese industry.
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