SINGAPORE, Sept 26 (Reuters) –
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Japanese rubber futures rose nearly 1% on Thursday on the back of a raft of monetary stimulus from top consumer China earlier this week, although lower synthetic rubber prices and a firmer yen limited the upside.
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The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was up 3.5 yen, or 0.9%, at 390.5 yen ($2.70) per kg, as of 0150 GMT.
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The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1, however, fell 15 yuan, or 0.08%, to 18,500 yuan ($2,631.92) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 fell 215 yuan, or 1.33%, to 15,915 yuan ($2,264.16) per metric ton.
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The People’s Bank of China on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government’s growth target, but analysts warned more fiscal help was vital to hit these goals.
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Following the move, China’s cabinet on Wednesday issued guidelines on promoting high-quality and sufficient employment, pledging to prioritise employment during socio-economic development and improve reasonable growth in pay, state media reported.
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The guidelines said the country will promote the coordination of fiscal, monetary and industrial policies to step up employment as a driving force for development.
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The yen strengthened about 0.15% to 144.57 per dollar JPY=EBS, climbing off a three-week low of 144.845 reached in the prior session, as traders looked ahead to speeches from key Federal Reserve policy makers later in the day for clues on the pace of interest rate cuts. USD/
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A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 203.0 U.S. cents per kg, up 0.9%.
($1 = 144.8900 yen)
($1 = 7.0291 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
