Japan rubber futures rise on softening yen, Chinese stimulus optimism

SINGAPORE: Japanese rubber futures ticked up on Thursday, buoyed by the yen at a milestone low and optimism around new stimulus from top consumer China.

The Osaka Exchange (OSE) rubber contract for June delivery closed up 6.5 yen, or 1,81%, to 364.7 yen ($2.31) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for March delivery gained 175 yuan, or 1.05%, to finish at 16,910 yuan ($2,306.42) per metric ton.

The most active February butadiene rubber contract on the SHFE eased 65 yuan, or 0.48%, to 13,535 yuan ($1,841.82) per metric ton.

The yen strengthened a bit to 158.10 per US dollar on the day, after touching a near six-month low of 158.55 on

Wednesday, hovering near the key 160 mark that led to Tokyo intervening in the market last July.

A weaker currency makes yen-denominated assets more Affordable for overseas buyers. China’s new yuan loans are expected to have risen by almost 38% in December 2024 from the month before, a Reuters poll showed on Thursday, as confidence in taking out debt grew stronger on the back of Beijing’s fiscal measures to spur economic growth.

Still, domestic consumer inflation slowed last month, while factory-gate deflation extended into a second year in 2024.

A combination of job insecurity, a prolonged housing downturn, high debt and U.S. President-elect Donald Trump’s tariff threats have hit demand even as Beijing ramps up stimulus measures to revive its consumer sector.