Japanese rubber futures hit 14-month high on firmer Shanghai prices

TOKYO: Japanese rubber futures climbed to a 14-month high on Friday, supported by a firmer Shanghai market and a rally in Tokyo equities amid hopes that Gulf oil shipments could be restored through global efforts.

The Osaka Exchange (OSE) rubber contract for September delivery finished 6.1 yen, or 1.6percent, higher at 393.7 yen (USD2.5) per kg, its highest close since January 31, 2025. The contract gained 5.2percent for the week. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 170 yuan to settle at 16,845 yuan (USD2,449) per metric ton.

Japan’s Nikkei share average rallied, trimming its losses for the week, following global efforts to restore Persian Gulf oil shipments interrupted by the war in Iran. Overnight, dozens of countries sought ways to restart vital energy shipments through the Strait of Hormuz after US President Donald Trump vowed more aggressive attacks on Iran.

US oil prices settled more than 11percent higher and Brent soared nearly 8percent on Thursday in volatile trading. Oil markets were closed on Friday for the Good Friday holiday.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The yen traded at 159.60 per dollar against 159.42 in late Thursday trade in Asia. A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.

The Singapore Exchange was closed for the Good Friday holiday.