SINGAPORE: Japanese rubber futures were on track to snap a six-day losing streak on Thursday, as hopes of a US-Iran peace deal and upbeat economic data in top consumer China lifted sentiment.
The Osaka Exchange rubber contract for September delivery was up 2 yen, or 0.51 percent, at 390.6 yen (USD2.46) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 55 yuan, or 0.33 percent, to 16,805 yuan (USD2,465.27) per metric ton.
The most active May butadiene rubber contract on the SHFE gained 140 yuan, or 0.87 percent, to 16,245 yuan per metric ton.
Global equities vaulted past their previous all-time highs in Asian trading on Thursday.
Japan’s Nikkei jumped 2.38 percent to close at a record high 59,518.34.
China’s economy grew 5.0 percent in the first quarter from a year earlier, official data showed, beating analysts’ expectations of 4.8 percent.
Rainfall in China’s rubber-producing province of Yunnan has alleviated worries of tight supply due to high temperatures and drought, according to Chinese broker GF Futures.
Tapping season is also set to begin in top-producer Thailand, as well as Vietnam, capping price upsides.
Rubber crops usually undergo a season of low production from February to April, before a peak harvesting period that lasts until September.
The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 202.9 US cents per kg, down 0.3 percent as of 0706 GMT.
Comments