SINGAPORE: Japanese rubber futures jumped more than 1 percent on Tuesday after a two-session slide, as a weaker yen and higher oil prices underpinned the market.
The Osaka Exchange (OSE) rubber contract for June delivery closed 5.2 yen, or 1.5 percent, higher at 352.8 yen (USD2.22) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was unchanged at 15,975 yuan (USD2,289.90) per metric ton.
The most-active February butadiene rubber contract on the SHFE gained 25 yuan, or 0.21 percent, to 12,000 yuan per ton.
The yen weakened to a 1-1/2-year low of 158.925 against the greenback.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
Japan’s Nikkei jumped 3.6 percent to an all-time high of 53,814.79.
Oil prices extended gains as heightened concerns surrounding Iran and potential supply disruptions outweighed the prospect of increased crude supply from Venezuela.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
There was additional demand for natural rubber stemming from continued physical demand, arbitrage transactions and speculative buying, the Japan Exchange Group said in a report on Monday.
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