TOKYO: Japanese rubber futures surged more than 2% on Tuesday, buoyed by strong factory data, a weaker yen and the Shanghai market’s rally after China affirmed flexible policies next year to support growth.

The Osaka Exchange’s rubber contract for June delivery finished 5.0 yen, or 2.2%, higher at 234.0 yen ($2.0) per kg.

The rubber contract on the Shanghai futures exchange for May delivery soared 385 yuan to finish at 14,745 yuan ($2,314) per tonne.

Japan’s factory output jumped at the fastest pace on record in November, as easing global supply chain bottlenecks helped car production leap out of its recent slump, lifting prospects for a strong fourth-quarter economic rebound.