TOKYO: Japanese rubber futures climbed on Monday, supported by a trade war truce deal between the US and China that boosted investor optimism and eased market uncertainty surrounding the world’s two largest economies.
The Osaka Exchange (OSE) rubber contract for October delivery closed up 3 yen, or 1.0%, at 312.5 yen ($2.11) per kg. The contract gained 1.4% last week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 320 yuan, or 2.2%, to 15,025 yuan ($2,083) per metric ton.
The United States and China agreed on Monday to temporarily slash reciprocal tariffs in a deal that surpassed expectations as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.
The US will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on US imports will fall to 10% from 125%, the two countries said on Monday. The new measures are effective for 90 days.
The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said the sides had reached “important consensus”. Neither side released details after they wrapped up two days of talks in Switzerland. Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday. Vice Commerce Minister Li Chenggang said it would contain “good news for the world”.
Rubber inventories in warehouses monitored by the SHFE fell 0.1% from last release on April 30.
China’s imports of natural and synthetic rubber fell about 10% in April to 685,000 metric tons, down from 760,000 tons in March, according to preliminary trade data.
The yen traded at 147.96 against the US dollar, compared with 145.42 yen in late Asia trade on Friday.
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