Japan futures rise as yen weakens, investor sentiment in China turns bullish
SINGAPORE, Nov 20(Reuters) -
Japanese rubber futures rose on Wednesday, boosted by a weaker yen and investor sentiment turning bullish in top consumer China.
The Osaka Exchange (OSE) rubber contract for Aprildelivery JRUc6, 0#2JRU: was up 1.9 yen, or 0.54%, at 356.4 yen per kg as of 0150 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for Januarydelivery SNRv1 rose 90 yuan, or 0.52%, to 17,520 yuan per metric ton.
China left benchmark lending rates unchanged at the monthly fixing on Wednesday, in line with market expectations, after lenders slashed rates by bigger-than-expected margins last month to revive economic activity.
On Beijing's property tax incentives, a local rubber trader said, "The China market is quite bullish on this sentiment and a lot of trades have been placed in futures with the expectations of them being bullish. However, these measures were not up to the expected levels, affecting the prices of commodities and leading traders to look back at fundamentals instead."
The yen JPY=EBS weakened to 154.96 per U.S. dollar, having hit a one-week high of 153.28 per dollar overnight. USD/
A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Oil edged up amid an escalation in the Ukraine war and signs of growing Chinese crude imports, while rising U.S. crude stocks checked overall price gains. 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.
Top rubber producer Thailand's meteorological agency warned of heavy rains that may cause flash floods from Nov. 19-25.
The front-month rubber contract on the Singapore Exchange's SICOM platform for December delivery STFc1 last traded at 187.4 U.S. cents per kg, up 0.4%.
Reporting by Haridas; Editing by Sumana Nandy
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