SINGAPORE: Japanese rubber futures climbed on Wednesday, buoyed by a weaker yen and tracking gains in oil, though cautious sentiment persisted.
The Osaka Exchange (OSE) rubber contract for March delivery ended up 3.5 yen, or 1.15 percent, at 306.9 yen (USD2.01) per kg.
The dollar was up as much as 0.5 percent against the yen at 152.64, the strongest level since February following the weekend election of Sanae Takaichi as Japan’s next prime minister.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Muted rubber market sentiment and the absence of Chinese players kept trading activity subdued, Japan Exchange Group said in a report on Monday.
The Chinese National Day Holiday runs from October 1-8.
Oil prices rose on fading oversupply concerns after OPEC+ decided to restrain its November production increases.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Japan’s Nikkei eased 0.35 percent after hitting a record peak in the previous session.
Top rubber producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods and overflows from October 9-14.
The World Bank lifted its projection for GDP growth in China this year to 4.8 percent, but cautioned that growth momentum may slow next year, citing low consumer and business confidence and weak new export orders.
A Reuters monthly poll showed business confidence in Japan’s auto sector has plunged, after having to contend with US tariffs of 15 percent. Automobile sales could influence the intensity of automobile manufacturing, which involves rubber-made tyres.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded flat at 170.4 US cents per kg.
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