Japan futures rise on yen's slide, easing China demand fears

11 Nov, 2021

TOKYO: Japanese rubber futures climbed on Thursday as the yen's slide against the US dollar and firmer Shanghai futures underpinned sentiment, helping to ease demand fears after weaker automobile sales in top buyer China.

Osaka Exchange's rubber contract for April delivery finished 3.5 yen, or 1.6%, higher at 223.7 yen ($2.0) per kg.

The rubber contract on the Shanghai futures exchange for January delivery rose 180 yuan to finish at 14,145 yuan ($2,211) a tonne.

The yen extended a sharp reversal of recent gains to 114.15 per dollar -- close to the Japanese currency's four-year low of 114.69, reached last month after the hottest US inflation reading in a generation fanned bets on higher interest rates.

A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

China's auto sales fell in October for a sixth consecutive month, slumping 9.4% from a year earlier, industry data showed on Wednesday, as a prolonged global shortage of semiconductors disrupts production.

The front-month rubber contract for December delivery on Singapore's SICOM exchange last traded at 170.9 US cents per kg, up 0.7%.

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