SINGAPORE: Japanese rubber futures rose on Thursday, tracking Shanghai gains as traders digested a stronger-than-expected factory activity growth in top buyer China, while a weaker yen also lent support.
The Osaka Exchange (OSE) rubber contract for August delivery was up 3.0 yen, or 1.3%, at 230.5 yen ($1.69) per kg, as of 0215 GMT. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was up 110 yuan, or 0.9%, at 12,615 yuan ($1,837.42) per tonne.
Japan’s benchmark Nikkei average opened up 0.18%. China’s manufacturing activity expanded at its fastest pace in more than a decade in February, an official index showed on Wednesday, while a private sector survey showed that China’s factory activity rose for the first time in seven months. The Japanese yen fell 0.1% against the dollar to 136.28.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies. A rally in Asian shares sputtered, pressured by a pullback in Chinese stocks and higher US yields amid fears that global central banks would keep raising interest rates higher to combat sticky inflation.
Source: Brecorder
