TOKYO: Japanese rubber futures fell for the second consecutive session after a US and Iran interim agreement to end the Iran war sent oil prices lower.
A rally in Japanese equities and a slip in the yen curbed the contracts’ downside.
The Osaka Exchange (OSE) rubber contract for November delivery was down 2.6 yen, or 0.57 percent, at 439.5 yen (USD2.74) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 240 yuan, or 1.33 percent, to 17,785 yuan (USD2,630.33) per metric ton. The most active July butadiene rubber contract on the SHFE fell 280 yuan, or 2.12 percent, to 12,955 yuan per metric ton.
The US and Iran released the text of their agreement on Wednesday, with US President Donald Trump threatening to resume attacks if they failed to honour their commitments.
Oil prices fell by more than USD2 per barrel on Thursday.
Natural rubber often tracks oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
In Japan, the Nikkei share gauge surged past the 71,000 level and closed at a new high for the first time on Thursday as geopolitical tensions eased.
The Japanese yen weakened to as much as 160.760 after hitting its weakest since 2024 overnight, wiping out gains made after Tokyo’s intervention on April 30.
The renewed slide prompted a fresh response from the government, with officials reiterating their readiness to support the currency.