SINGAPORE: Japanese rubber futures rose for the fourth straight session on Wednesday, buoyed by weakness in the yen and auto sector optimism.
The Osaka Exchange (OSE) rubber contract for April delivery was up 1.9 yen, or 0.6 percent, at 320.6 yen(USD2.13) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 85 yuan, or 0.56 percent, to 15,220 yuan (USD2,136.74) per metric ton.
The most active January butadiene rubber contract on the SHFE gained 155 yuan, or 1.51 percent, to 10,430 yuan per ton. The yen has been bruised from the overall risk-on market sentiment, down 0.8 percent for the week so far. A stronger currency makes yen-denominated assets less affordable to overseas buyers.
China hopes Germany will urge the Dutch government to revoke its seizure of chipmaker Nexperia, Chinese Commerce Minister Wang Wentao said on Tuesday during a call with his German counterpart.
In response to the seizure, the Chinese government imposed export curbs on the company’s China-made products, creating a supply shortage for the chips which are used in car production.
However, supply shortages have eased in recent days after Beijing granted exemptions to its export controls, though tensions remain. Meanwhile, Chinese electric vehicle maker BYD aims to sell up to 1.6 million vehicles abroad next year, up from an expected 900,000 to 1 million vehicles sold outside China in 2025.