SINGAPORE: Japanese rubber futures jumped on Wednesday to their highest in a week, buoyed by a weaker yen and a survey showing solid China exports in October, while traders awaited the outcome of the US presidential election.
The April Osaka Exchange (OSE) rubber contract closed up 12.9 yen, or 3.66%, at 365.0 yen ($2.37) per kg, its strongest since Oct. 29. The January rubber contract on the Shanghai Futures Exchange (SHFE) rose 380 yuan, or 2.14%, to finish at 18,125 yuan ($2,528.78) per metric ton.
“This week, futures are probably reacting to the US election and the slightly stronger dollar driving positive sentiment across markets, including rubber,” said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies.
“There could also be some technical buying driving the midweek move up, adjusting from the sharp drop on Monday.” US stock futures surged in Asia as investors wagered Republican Donald Trump could win the US presidential election, though officially the race remained too early to call.
Japan’s Nikkei rose 2.4% as the dollar added as much as 1.8% to 154.34 yen, the highest since July 30. A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. Meanwhile, China braced for a US election outcome that - regardless of who wins - would spell four more years of bitter superpower rivalry over trade, technology and security issues.
China’s outbound shipments likely rose at a faster pace in October, buoyed by better weather and steep discounts even as manufacturers and other major exporters report a drop off in global demand, a Reuters poll showed. The front-month December rubber contract on Singapore Exchange’s SICOM platform last traded at 196.8 US cents per kg, up 0.2%
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