SINGAPORE: Japanese rubber futures rose on Thursday after some labour nions in the country won big pay hikes, while better-than-expected trade figures from major consumer China also lifted sentiment.

The Osaka Exchange (OSE) rubber contract for August delivery was up 0.4 yen, or 0.4%, at 300.3 yen ($2.02) per kg as of 0427 GMT.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was up 15 yuan, or 0.11%, at 13,775 yuan ($1,913.67) per metric ton.

Japan’s benchmark Nikkei average opened 0.6% higher.

Bank of Japan (BOJ) board member Junko Nakagawa said on Thursday the economy was moving steadily towards sustainably achieving the central bank’s 2% inflation target.

Japanese workers’ nominal pay in January grew 2% from a year arlier, accelerating from a gain of 0.8% the previous month.

Japan’s largest industrial union group UA Zensen said on Thursday that 25 of its member unions have so far won full response from management, agreeing to raise full-time workers’ pay by 6.7%, during closely-watched annual wage talks due to wrap up March 13.

Japanese rubber futures rise for second session

A firmer yen, however, capped further gains in Japanese rubber futures. Yen strengthened 0.58% to 148.52 against the dollar as momentum builds that a move from the BOJ to end negative interest rates could come as soon as this month.

China’s exports rose 7.1% in the January-February period from a year earlier, while imports increased 3.5%, both beating forecasts. The data suggested global trade is turning a corner, an encouraging signal for policymakers given protracted weakness in manufacturing has been a drag on the economy.

The front-month rubber contract on the Singapore Exchange’s SICOM platform for April delivery last traded at 159.8 U.S. cents per kg, up 0.31%.