SINGAPORE, Oct 1 (Reuters) –
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Japanese rubber futures rose on Tuesday on the back of a weaker yen and prospects of stronger growth in top buyer China after a slew of support measures for its economy.
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The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was up 10.5 yen, or 2.6%, at 413.8 yen ($2.88) per kg, as of 0152 GMT.
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The Shanghai Futures Exchange is closed from Oct. 1 to 7 for the National Day holiday. Trading will resume on Tuesday, Oct. 8.
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The one-week holiday in China may see softened trading activity for the OSE contract, which still has room for further upside, Japan Exchange Group said in a report.
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The dollar rose 0.23% to 143.95 yen JPY=EBS after Federal Reserve Chair Jerome Powell pushed back overnight against bets on more supersized interest rate cuts. USD/
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A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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Japan’s Nikkei .N225 rose more than 1%, supported by a softer yen. T.
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Beijing plans to issue sovereign bonds worth about 2 trillion yuan ($284 billion) this year, in part to subsidise consumer goods purchases and child support, effectively transferring funds to households.
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Analysts say this year’s consumer-focused efforts are likely to be enough to bring China’s 2024 growth back to about 5% after below-forecast data in the past several months cast doubts over that target, but hardly change the long-term outlook.
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The European Commission is willing to continue negotiating with China a potential deal to avert tariffs on Chinese electric vehicles even after such tariffs are imposed, a senior EU official said on Monday.
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Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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The front-month November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 217.5 U.S. cents per kg, up 0.9%.
($1 = 143.7400 yen)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
