Japanese futures rebound as rally in Tokyo stocks lifts sentiment
USO•Japanese rubber futures rose 1.05% to 423.6 yen per kg, recouping some of the previous session’s losses as Tokyo stocks rallied. Shanghai rubber futures gained 0.7%, while butadiene rubber fell 4.6%.
1. Rubber futures rise
The Osaka Exchange rubber contract for April delivery was up 4.4 yen, or 1.05%, at 423.6 yen per kg. The January rubber contract on the Shanghai Futures Exchange rose 130 yuan, or 0.7%, to 18,800 yuan per metric ton, while its most-active December butadiene rubber contract fell 725 yuan, or 4.6%, to 15,020 yuan per metric ton.
2. Market drivers
Japan’s Nikkei share average ended nearly 3% higher, extending its rebound from a tech-led selloff the previous week as AI-related stocks surged. Analysts at CITIC Securities Futures said sustained oversupply pressure was not yet visible and prices were unlikely to keep falling, while adding that expectations for El Niño’s impact on rubber production may have been overstated. They said expectations of weaker overseas economies had accelerated the price decline since mid-October.
3. China auto data
China’s passenger vehicle exports rose 68.2% year on year to 932,000 in October, while domestic sales fell 27.3% to 1.65 million, marking a 12th consecutive monthly decline, according to the China Passenger Car Association. Automobile sales could influence manufacturing activity, which uses rubber-made tyres. The February rubber contract on Singapore Exchange’s SICOM platform last traded up 1% at 239.6 US cents per kg.
