Japan futures advance on softer yen, upbeat Chinese demand outlook
SINGAPORE, Sept 19 (Reuters) -
Japanese rubber futures strengthened on Thursday, buoyed by a weaker yen and firmer demand prospects from top consumer China, although lower oil prices capped gains.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 2.5 yen, or 0.67%, at 377.4 yen ($2.63) per kg as of 0202 GMT.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 was up 210 yuan, or 1.19%, to 17,900 yuan ($2,520.27) per metric ton.
The most active November butadiene rubber contract on the SHFE SHBRv1 rose 215 yuan, or 1.36%, to 16,060 yuan ($2,261.21) per metric ton.
The dollar on Thursday gained 0.58% against the yen to 143.12 JPY=EBS, recovering from an earlier tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Downstream production has stabilised, and the automobile industry has gradually emerged from the off-season, Chinese financial information site Hexun Futures said in a note.
Analysts believe the rubber market will continue to fluctuate and rise in the short-term, and will continue to track weather changes in major production areas, as well as the impact of U.S. trade policies on China, Hexun Futures said.
China's commerce minister said on Wednesday that Beijing will continue to negotiate "until the last minute" on the European Union's electric vehicle probe.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Oil prices fell on Thursday after a larger-than-expected Fed rate cut sparked concerns about the U.S. economy. O/R
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month October rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 195.3 U.S. cents per kg, up 1.2%.
($1 = 143.7400 yen)
($1 = 7.1024 yuan)
Reporting by Gabrielle Ng; Editing by Mrigank Dhaniwala
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