SINGAPORE: Japanese rubber futures snapped a two-day fall on Monday as wet weather in key production areas sparked supply concerns, outweighing slowing tyre demand in top consumer China.
The Osaka Exchange (OSE) rubber contract for November delivery closed up 6.1 yen, or 2.06%, at 301.5 yen ($2.05) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery traded flat at 13,950 yuan ($1,941.46) per metric ton.
The most active July butadiene rubber contract on the SHFE weakened 150 yuan, or 1.28%, to 11,575 yuan ($1,610.93) per metric ton.
Rubber tapping has been disrupted by rainfall in domestic and overseas production areas, affecting the output of raw materials, said broker Everbright Futures.
Top rubber producer Thailand’s meteorological agency warned of heavy rains, which may cause flash flooding from June 23-27.
In currency markets, the dollar was up 0.52% against the yen at 146.81 after touching a one-month high earlier in the session.
A weaker currency makes yen-denominated assets more affordable to overseas buyers. Broadly, Japan’s manufacturing activity returned to growth in June after nearly a year of contraction, a private sector survey showed, buoying investor sentiment.