SHANGHAI: Japanese rubber futures edged higher on Thursday, supported by a weaker yen and firmer Tokyo equities, although lower oil prices limited the advance.
The Osaka Exchange (OSE) rubber contract for February delivery was up 2.7 yen, or 0.63percent, at 427.9 yen (USD2.75) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 25 yuan, or 0.13percent, to 18,820 yuan (USD2,806.11) per metric ton.
The most active October butadiene rubber contract on the SHFE lost 150 yuan, or 1.01percent, to 14,740 yuan per ton. At 155.98 per dollar, the Japanese yen hovered near a two-week low as markets awaited the Bank of Japan’s decision on Friday.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. Japan’s Nikkei share average rose as investors snapped up beaten-down gaming and pharmaceutical stocks, while sentiment was supported by lower crude oil prices and a largely expected policy decision from the US Federal Reserve.
Oil prices eased, extending losses on reports of Saudi Arabia offering extra crude cargoes through Oman, which reduced fears of supply disruptions, but stayed above USD100 on concerns about the Middle East conflict expanding.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 237.2 US cents per kg, down 0.1percent, as of 0700 GMT.
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