Japanese rubber rises
SINGAPORE: Japanese rubber futures rose on Monday, buoyed by China granting exemptions to export curbs on Nexperia chips for civilian use, while a weaker yen made the commodity cheaper for other currency holders.
The Osaka Exchange (OSE) rubber contract for April delivery ended up 1.76 percent at 318.5 yen (USD2.11) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery gained 0.57 percent to 15,110 yuan (USD2,121.30) per metric ton.
The most-active Decem-ber butadiene rubber contract on the SHFE climbed 0.39 percent to 10,275 yuan per ton.
China has granted exceptions to export controls on Nexperia chips for civilian applications, the commerce ministry said on Sunday. Nexperia manufactures chips used in auto manufacturing.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. The dollar was up 0.2 percent against the yen at 153.80, following comments from Japanese Prime Minister Sanae Takaichi that the government would ditch the current annual fiscal target in favour of one that measures spending through several years.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. Oil prices rose on optimism that the US government shutdown could end soon and lift demand in the world’s top oil consumer.
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