SINGAPORE: Japanese rubber futures rose for a fourth straight day on Friday to post the first weekly gain in four weeks after lower-than-expected weekly US jobless claims eased recession fears while a weaker yen also lent support.
The Osaka Exchange (OSE) rubber contract for January delivery closed 0.16% higher at 322 yen ($2.19) per kg. It hit 325.7 yen earlier in the session, the highest since July 22.
For the week, the contract gained 2.13%, the biggest increase since early June. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 65 yuan, or 0.45%, to 15,920 yuan ($2,219.77) per metric ton.
The contract rose 1.79% for the week, a second straight weekly gain. The number of Americans filing new applications for unemployment benefits fell more than expected last week, calming fears the labour market was unravelling and reinforcing that a gradual softening remains intact.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.3 % from last Friday, the exchange said on Friday. Japan’s Nikkei share average rebounded on Friday as a surprise drop in US unemployment claims assuaged recession fears.
The yen was trading at 147.23 yen against the dollar on Friday, against 145.95 yen in late Thursday trade in Asia. A weaker currency makes yen-denominated assets more affordable to overseas buyers. Singapore’s financial markets are closed on Friday for a public holiday. Trading will resume on Monday, Aug. 12.
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