SINGAPORE, Oct 18 (Reuters) –
- Japanese rubber futures rose for the second straight session on Friday and are set to gain for the week, buoyed by a batch of better-than-expected economic data from top consumer China and a softer yen.
- The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was up 5.5 yen, or 1.43%, at 391.0 yen ($2.61) per kg as of 0221 GMT.
- The contract has gained 1.19% so far this week.
- The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 445 yuan, or 2.49%, to 18,300 yuan ($2,569.29) per metric ton.
- China’s economy expanded 4.6% in the third quarter from a year earlier, official data showed on Friday, slightly beating analysts’ expectations, maintaining pressure on Beijing as it considers more stimulus measures.
- The country’s industrial output in September grew 5.4% from a year earlier, up from a 4.5% pace in August, providing some encouragement to policymakers as they step up efforts to revive a sluggish economy near the year-end.
- Authorities have sharply ramped up policy stimulus since late September to revive the flagging economy and ensure growth reaches the government’s target of around 5% this year.
- The U.S. dollar forged to the strong side of 150 yen JPY=EBS for the first time since early August, helped by a dovish European Central Bank and strong U.S. data that are pushing out expectations for how fast U.S. rates can fall, particularly if Donald Trump wins the presidency. USD/
- A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
- Weakness in the yen boosted Japanese stocks, with the Nikkei .N225 gaining 0.4%. .T
- The front-month November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 198.9 U.S. cents per kg, up 1.7%.
($1 = 150.0100 yen)
($1 = 7.1226 yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
