Japan futures extend gains on supply disruption fears

SINGAPORE, Sept 10 (Reuters) –

Japanese rubber futures climbed for a third straight session on Tuesday, buoyed by wet weather in some producing regions of China and Thailand, while firmer oil prices also lent support to the market.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 4.2 yen, or 1.18%, at 360.8 yen ($2.52) per kg as of 0212 GMT.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 240 yuan, or 1.45%, to 16,845 yuan ($2,364.51) per metric ton.
Asia’s strongest storm this year, Super Typhoon Yagi, landed in China’s Hainan on Friday, bringing violent gales and heavy rain that triggered widespread power outages, paralysing the province.
Top producer Thailand’s meteorological agency warned of heavy rains that may cause flash flood from Sept. 13-15.
The yen inched away from one-month highs as investors braced for U.S. inflation data and reassessed expectations of a large Fed rate cut starting next week. USD/
The dollar was up 0.1% at 143.30 yen JPY=EBS.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Japan’s Nikkei .N225 traded 0.4% higher, helped by gains in financial and consumer names. T.
Oil was steady after gaining around 1% on Monday, as investors weighed supply disruptions from Tropical Storm Francine and the potential for further output cuts against persistently weak Chinese demand. O/R
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Passenger vehicle sales in China fell in August for the fifth straight month, though sales of all-electric and plug-in hybrid models rose.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 183.1 U.S. cents per kg, down 0.3%.

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