SINGAPORE: Japanese rubber futures inched higher on Monday, buoyed by a stronger Tokyo stocks, though gains were capped by a weaker Shanghai market and more pessimistic data from the automobile sector.
The Osaka Exchange rubber contract for November delivery finished up 0.4 yen, or 0.2%, at 248.2 yen ($1.95) per kg.
Japan’s benchmark Nikkei share average gained 2.2% to close at its highest in more than a month, buoyed by machinery and technology stocks, as Shanghai’s stimulus measures and decision to ease COVID-19 curbs tempered fears of a sharp slowdown in the world’s second-largest economy.
Japan’s Toyota Motor Corp said it missed its global production target for April as COVID-19 outbreaks and a parts shortage slowed its post-pandemic recovery.
The rubber contract on the Shanghai futures exchange for September delivery was down 90 yuan to finish at 13,145 yuan ($1,972.89) per tonne, after hitting the highest since April 21 at 13,355 yuan earlier in the session.
“Traders are still on the cautious side. Even with the reopening in Shanghai, it will take time for logistics and manpower to resume to pre-COVID levels,” said a Singapore-based trader.
Streets in Beijing were busier on Monday, as residents in two districts were allowed to return to work, while Shanghai inched closer towards lifting its two-month old COVID-19 lockdown from Wednesday, as the number of infections across China dropped.
The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 165.0 US cents per kg, up 0.7%.