Japan futures jump to 6-week high on global commodity rally

TOKYO Japanese rubber futures jumped to a 6-week high on Thursday as a rally in global commodity prices and healthy economic data from some of the world's largest economies bolstered risk appetite and prompted fresh buying.

Osaka Exchange's rubber contract for October delivery finished up 13.0 yen, or 5.3%, at 257.9 yen ($2.4) per kg. It hit the highest since March 25 of 258.0 yen earlier in the session.

Japanese financial markets were closed between Monday and Wednesday due to national holidays.

The rubber contract on the Shanghai futures exchange for September delivery also surged 450 yuan to finish at 14,375 yuan ($2,220) per tonne, after touching the highest since April 7 of 14,390 yuan earlier in the session.

The US economy is growing at its fastest rate since the early 1980s, while British manufacturing activity grew at its quickest in almost 27 years last month.

"The OSE rubber prices are catching up with the rally in the global commodities amid expectations of higher inflation," a Tokyo-based dealer said.

Copper hit a fresh 10-year high on Wednesday, while aluminium neared $2,500 a tonne on Thursday, a level not seen since 2018. Chinese steel futures resumed their record-setting rally on Thursday.

"It looks that rubber prices will stay on a bullish tone," the dealer said.

The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 171.7 US cents per kg, up 1.9%.

Ivory Coast exported 242,621 tonnes of natural rubber from January to March, down about 30% from the same period in 2020, provisional port data showed on Tuesday.