TOKYO: Japanese rubber futures rose for a third session on Tuesday, supported by a weaker yen and firmer oil prices, although persistent weakness in tyre sector demand limited gains.
The Osaka Exchange (OSE) rubber contract for December delivery was up 1.5 yen, or 0.36 percent, at 421.4 yen (USD2.60) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 50 yuan, or 0.3 percent, to 16,970 yuan (USD2,496.62) per metric ton.
The most active September butadiene rubber contract on the SHFE rose 45 yuan, or 0.37 percent, to 12,250 yuan per metric ton.
The yen hovered near a four-decade low on Tuesday, leaving traders wary of possible intervention by Japanese authorities to bolster the currency, while the dollar steadied after recent losses.
The yen was up 0.2 percent at 161.75 per dollar, reversing some of its earlier-session decline, though it remained close to a 162.84 trough hit last week.
A weaker yen makes Japanese rubber futures more affordable to buyers holding other currencies.
Oil prices edged higher on Tuesday as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.
Gains were, however, capped as downstream demand remained soft.
Chinese tyre manufacturers are contending with weak new order expectations and accumulating finished goods inventory, with the semi-steel tyre segment under particular strain, said Chinese broker Guoxin Futures in a note.
Some tyre companies have begun shutting down for maintenance since early July, reducing near-term rubber consumption, according to Guoxin Futures.
The front-month rubber contract on Singapore Exchange’s SICOM platform for August delivery last traded at 216 US cents per kg, up 1 percent as of 0700 GMT.
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