Japan futures climb on Thailand supply concerns, but firmer yen caps gains
SINGAPORE, Nov 28 (Reuters) -
Japanese rubber futures rose on Thursday on supply concerns in top producer Thailand, but the rally in yen provided a ceiling for gains.
The Osaka Exchange (OSE) rubber contract for May delivery JRUc6, 0#2JRU: was up 4.6 yen, or 1.25%, at 372.5 yen($2.46) per kg as of 0201 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for Januarydelivery SNRv1 rose 405 yuan, or 2.29%, to 18,125 yuan ($2,502.35) per metric ton.
The most active Januarybutadiene rubber contract on the SHFE SHBRv1 rose 25 yuan, or 0.2%, to 12,845 yuan($1,773.39) per metric ton.
The yen rallied sharply for two days in anticipation of the Bank of Japan hiking interest rate in December and rose through its 200-day moving average to 151.50 per U.S. dollar JPY=EBS. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Oil prices were little changed on Wednesday, pressured by a large surprise build up in U.S. gasoline stocks and worries about U.S. interest rate cuts next year. However, supply concerns eased after a ceasefire deal between Israel and Hezbollah, lending some support to prices. O/R
Natural rubber often takes direction from oil as it competes for market share with synthetic rubber, which is made from crude oil.
Top rubber producer Thailand's meteorological agency warned of heavy rains that may cause flash floods from Nov. 27 - Dec. 3.
Shares of Pony AI PONY.O opened about debut trade 15% above its offer price on Wednesday, giving the Chinese robotaxi company a valuation of $5.25 billion in an indication of a positive investor approach to Chinese firms.
Vehicle sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The front-month rubber contract on Singapore Exchange's SICOM platform for December delivery STFc1 last traded at 192.4 U.S. cents per kg, up 1.4%.
($1 = 151.4000 yen)
($1 = 7.2432 yuan)
Reporting by Haridas; Editing by Sumana Nandy
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