SINGAPORE, Oct 7 (Reuters) –
- Japanese rubber futures recouped early losses on Monday to close higher, as prospects of stronger economic growth in China and the United States, the world’s top two economies, lifted market sentiment.
- The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed up 4.1 yen, or 1.03%, at 403.9 yen ($2.72)per kg, after falling 2.1 yen earlier.
- The Shanghai Futures Exchange is closed from Oct. 1-7 for China’s National Day holiday. Trading will resume on Tuesday, Oct. 8.
- A recovery in natural rubber prices is expected to gain pace this week as markets in top consumer China reopen on Tuesday, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
- Additionally, offshore shares of China’s major property developers are gaining, indicating an early recovery in China’s property sector, said Jacob.
- Also supporting a potential rebound in rubber prices is a “marked improvement” in the U.S. economic outlook after the September employment report, said Jacob.
- Some Chinese and global institutional investors are revisiting Chinese property bonds, betting on an improvement in outlook as the government accelerates efforts to boost economic growth and revive a property sector in the throes of a debt crisis.
- Senior officials from China’s top economic planning agency will brief reporters on Tuesday on steps to implement policies to promote economic growth.
- Before the National Day holiday, China’s central bank lowered interest rates and injected liquidity into the banking system while regulators eased some property curbs in a package of stimulus measures that sent stocks soaring.
- U.S. job gains increased by the most in six months in September and the unemployment rate fell to 4.1%, pointing to a resilient economy.
- The front-month November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 205.2 U.S. cents per kg, up 2.2%.
($1 = 148.3700 yen)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
