SHANGHAI: Japanese rubber futures gained on Monday as Japanese stocks rallied after Prime Minister Sanae Takaichi’s landslide victory on Sunday.
The Osaka Exchange (OSE) rubber contract for July delivery was up 5 yen, or 1.43percent, at 354.9 yen (USD2.27) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 135 yuan, or 0.84percent, to 16,245 yuan (USD2,344.32) per metric ton.
The most active March butadiene rubber contract on the SHFE fell 15 yuan, or 0.12percent, to 12,810 yuan per metric ton. Japan’s Nikkei closed at its highest level ever after surging as much as 5.7 percent to an unprecedented 57,337.07.
Speculative selling and long liquidation followed heightened volatility and sharp price swings in precious metals, particularly gold and silver, Japan Exchange Group said in a report on Monday. Open interest fell sharply across all exchanges, indicating that traders closed long positions after the recent price run-up, the report added.
Rubber inventories in SHFE-monitored warehouses were little changed as the Lunar New Year approaches, the exchange said on Friday.
However, a weaker demand for electric vehicles could curb long-term price upsides.
Meanwhile, automaker Stellantis announced 22.2 billion euros (USD26.5 billion) of charges on Friday as it scales back its EV ambitions, hammering its shares.
Its Milan-listed shares slumped as much as 30percent, as confidence was rattled by automakers’ pullback from EVs in response to the Trump administration rolling back subsidies and weaker-than-expected demand. The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 189.7 US cents per kg, up 0.9percent, as of 0700 GMT.
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