SINGAPORE, April 30 (Reuters) –
Japanese rubber futures rose for a second session on Tuesday after returning from a holiday amid a weaker yen, while better-than-expected domestic factory data lifted investor sentiment, but the market was down for the month.
The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: was up 5.2 yen, or 1.7%, at 310.6 yen ($1.98) per kg as of 0200 GMT. It rose as much as to 317.6 yen earlier in the session.
The contract is set to lose more than 5% in April.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 was down 55 yuan, or 0.39%, at 14,165 yuan ($1,956.38) per metric ton.
The Japanese yen JPY= weakened 0.31% to 156.83 against the dollar. A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Japan’s factory output grew more than expected in March, thanks largely to automakers resuming production after safety scandals.
China’s manufacturing activity expanded at a slower pace in April, an official factory survey showed.
Rubber inventories in warehouses monitored by the SHFE rose 0.1% from last Friday.
China’s intelligent network new energy vehicles have a leading edge amid market cooperation and open cooperation, and must strive to maintain and develop these advantages, Premier Li Qiang said on Sunday.
Rapid disinflation and resilient growth will help Asia Pacific achieve a “soft landing” even though economic expansion is expected to slow over the next two years, the International Monetary Fund said.
The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery STFc1 last traded at 161 U.S. cents per kg.
Financial markets in China and Singapore are closed on Wednesday for a holiday.
China’s markets will re-open on Monday, May 6 and Singapore’s markets will open on Thursday, May 2.
($1 = 156.9100 yen)
($1 = 7.2404 yuan)
– Reuters
Here’s a summary of the main points:
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Japanese Rubber Futures: The Osaka Exchange (OSE) rubber contract for October delivery experienced a rise of 5.2 yen or 1.7%, trading at 310.6 yen per kg. Despite the increase, the contract is anticipated to see a loss of over 5% for the month of April.
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Currency Impact: The Japanese yen weakened by 0.31% to 156.83 against the dollar, which generally makes yen-denominated assets cheaper for foreign investors.
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Industrial Production: Japan’s factory output in March exceeded expectations, largely driven by the automotive sector’s recovery from previous safety issues.
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China’s Manufacturing Activity: Growth in China’s manufacturing sector slowed in April, according to an official survey.
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Rubber Inventory: SHFE-monitored rubber inventories saw a slight increase of 0.1% from the previous week.
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New Energy Vehicles: China’s Premier Li Qiang emphasized the country’s leading position in intelligent network new energy vehicles and the importance of sustaining this advantage.
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Economic Outlook: The IMF predicts a “soft landing” for the Asia Pacific region, with rapid disinflation and robust growth, despite an expected slowdown in economic expansion over the next two years.
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Market Closures: Financial markets in China and Singapore will be closed for a holiday, with China reopening on May 6 and Singapore on May 2.
The exchange rates provided at the end of the text indicate that 1 USD is equivalent to 156.9100 JPY and 7.2404 CNY. These rates are crucial for international traders and investors who deal with currency exchange in their transactions.
This information is valuable for stakeholders in the rubber industry, as well as for financial analysts and economists who track commodity markets and their correlation with global economic trends.
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