SINGAPORE: Japanese rubber futures rallied for a fourth session on Monday amid a strong tyre demand outlook in 2024, although a jump in rubber inventories limited the gains.

The Osaka Exchange (OSE) rubber contract for June delivery closed up 0.2 yen, or 0.07%, at 271.5 yen ($1.83) per kg, its highest close since Nov. 16.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery tumbled 250 yuan to finish at 13,545 yuan ($1,882.24) per metric ton. The sole Thai distributor of BYD, the world’s biggest electric vehicle maker, will triple its dealerships in Thailand in two years, helping to cement the Chinese automaker’s dominant position in its top overseas market.

The U.S economy should avoid a recession in 2024, according to a National Association of Business Economics poll. Japan’s benchmark Nikkei average closed 1.62% higher, and rallied to a fresh 34-year peak. The Japanese yen strengthened 0.05% to 148.10 against the dollar. The dollar was up more than 2% against the yen last week. The Bank of Japan is scheduled to hold a policy meeting on Monday and Tuesday, and is likely to maintain its ultra-loose monetary settings. Beijing still seems reluctant to deliver aggressive stimulus, with the central bank again skipping on a rate cut in its market operations.

Faced with weak domestic markets, mainland Chinese investors are rushing into funds that invest in overseas markets, such as Japan and India. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 5.0% from last Friday, the fastest increase since Dec. 15. The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 151.60 US cents per kg, down 1.75%.