Japan futures climb on new China fiscal stimulus prospects

SINGAPORE, Sept 26 (Reuters) –

Japanese rubber futures rose over 1% on Thursday on hopes of fresh fiscal stimulus measures from top consumer China, although lower synthetic rubber and oil prices limited gains.
The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: closed up 4 yen, or 1.03%, at 391.0 yen ($2.70) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1, however, fell 75 yuan, or 0.41%, to 18,440 yuan ($2,627.15) per metric ton.
The most active November butadiene rubber contract on the SHFE SHBRv1 fell 310 yuan, or 1.92%, to 15,820 yuan ($2,253.88) per metric ton.
On Thursday,Chinese leaders vowed to deploy “necessary fiscal spending” to meet this year’s economic growth target of roughly 5%, acknowledging new problems and raising market expectations for fresh stimulus on top of measures announced this week.
The politburo’s pledge come days after the central bank announced itsmost aggressive set of monetary policy easing measures since the pandemic, flagging cuts to a broad range of interest rates and a 1 trillion yuan ($142.45 billion) liquidity injection, among other steps.
Analysts said that morefiscal help was vital to hit the economy’s goals.
The yen JPY=EBS hit a three-week low of 145.04 per dollar on Thursdayand last fetched 144.77.
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Oil prices dropped on the day, reversing earlier gains, as news of top exporter Saudi Arabia giving up its crude oil price target in preparation for expanded production weighed on the market. 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 201.7 U.S. cents per kg, up 0.3%.

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