Japanese futures rise on higher oil prices, but firm yen limits upside

SINGAPORE, Sept 24 (Reuters) –

Japanese rubber futures rose on Tuesday, climbing for the first time in three sessions, supported by higher crude oil prices, although a stronger yen capped further gains.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 3.3 yen, or 0.9%, at 370 yen ($2.58) per kg, as of 0215 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 rose 100 yuan, or 0.6%, to 17,600 yuan ($2,493.27) per metric ton.
The most active October butadiene rubber contract on the SHFE SHBRv1 fell 30 yuan, or 0.2%, to 15,435 yuan per metric ton.
Sino-U.S. relations took another step backwards, raising concerns over tyre demand outlook in top consumer China.
The U.S. Commerce Department on Monday proposed prohibiting key Chinese software and hardware in connected vehicles on American roads due to national security concerns.
The Commerce Department said the rule would amount to a ban on all vehicles manufactured in China but excluding “specific authorisations”.
Automobile sales could impact China’s automobile manufacturing, which involves using rubber-made tyres.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK and block rubber RUB-STR20C-BKK were down 1.56% and 0.74%, to stand at 91.46 baht($2.77) and 67.23 baht($2.04), respectively.
The yen edged higher to 143.45 per dollar JPY=EBS, but remained close to the centre of its September range of 147.20 to 139.58, a more than one-year peak reached on Sept. 16. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Oil prices rose on concerns the intensifying conflict in the Middle East may impact supply, and a tropical storm may hit output in the U.S., the world’s biggest crude producer, later this week. 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.
The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 192.4 U.S. cents per kg, up 0.4%.

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