SINGAPORE: Japanese rubber futures rose on Thursday on stronger oil prices, but gains were limited by a stronger yen, with market focus on the anticipated fiscal stimulus from top consumer China.
The Osaka Exchange (OSE) rubber contract for April delivery closed higher by 3.1 yen, or 0.85%, at 367.4 yen ($2.37) per kg. The Osaka rubber contract hit a two-week high, its highest since Nov. 7. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed up 125 yuan, or 0.71%, to 17,720 yuan($2,447.45) per metric ton.
The most-active January butadiene rubber contract on the SHFE closed up 20 yuan, or 0.15%, to 13,180 yuan per metric ton. Chinese government advisers are recommending that Beijing should maintain an economic growth target of around 5.0% for next year, pushing for stronger fiscal stimulus to mitigate the impact of expected US tariff hikes on the country’s exports.
The dollar gave up some gains against the yen, down 0.33% at 154.91 yen, although the Japanese currency remained under pressure. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
Related Post
Oil prices rose marginally as geopolitical concerns over escalating tensions between Russia and Ukraine countered the impact from a bigger-than-expected increase in US crude inventories.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Source: Brecorder
