SINGAPORE: Japanese rubber futures rose marginally on Friday, tracking Shanghai market higher on hopes for further economic stimulus, although prices appeared set for a weekly loss.

The Osaka Exchange (OSE) rubber contract for November delivery was up 0.4 yen, or 0.2%, at 211.1 yen ($1.51) per kg, as of 0153 GMT, strengthening for a second straight day.

The benchmark contract shrank 0.47% so far this week. The rubber contract on the Shanghai futures exchange (SHFE) for September delivery climbed 70 yuan, or 0.6%, at 12,140 yuan ($1,703.81) per metric ton.

Japan’s benchmark Nikkei average opened 0.26% lower. China will roll out more stimulus to support a slowing economy this year, but concerns over debt and capital flight will keep measures targeted at shoring up weak demand in the consumer and private sectors, sources involved in policy discussions said. The world’s second-largest economy stumbled in May with data on Thursday showing factory output and retail sales growth missing forecasts, adding to signs that the post-pandemic recovery is rapidly losing steam.

Meanwhile, the Bank of Japan is widely expected to maintain ultra-easy monetary policy on Friday despite stronger-than-expected inflation. Japan’s exports grew unexpectedly in May on robust car sales, though the rate of expansion slowed to a crawl as inflation and rising interest rates bit into global demand.

Asian shares rose to touch a near four-month high as resilient US economic data stoked expectations that the Federal Reserve is near the end of its rate-hike campaign, with investor focus switching to the Bank of Japan’s policy meeting. The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 134.6 US cents per kg, up 0.6%.