Japan futures rise on weaker yen as fresh Trump tariff vows boost dollar
SINGAPORE, Nov 26 (Reuters) -
Japanese rubber futures rose on Tuesday as a weaker yen, caused by the strengthening of the U.S. dollar due to tariff pledges by U.S President-elect Donald Trump, buoyed the market.
The Osaka Exchange (OSE) rubber contract for May delivery JRUc6, 0#2JRU: was up 2.3 yen, or 0.64%, at 359 yen($2.33) per kg as of 0156 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 remained unchanged at 17,390 yuan($2,396.77) per metric ton.
The most active January butadiene rubber contract on the SHFE SHBRv1 rose 20 yuan, or 0.16%, to 12,720 yuan($1,753.13) per metric ton.
A leading indicator of Japan's service-sector inflation held steady near 3% in October, data showed on Tuesday. It's one of the economic indicators the Bank of Japan will scrutinise at its December policy meeting, where some analysts expect it to hike interest rates from the current 0.25%.
The yuan fell against the dollar to its weakest level in nearly four months after Trump said he would impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China.
The U.S. currency added 0.14% to 154.43 yen JPY=EBS. USD/
A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Oil prices slipped in early trade, extending declines from the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil's risk premium. 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. 25- Dec. 1.
The front-month rubber contract on Singapore Exchange's SICOM platform for December delivery STFc1 last traded at 187.8 U.S. cents per kg, up 0.8%.
($1 = 154.0700 yen)
($1 = 7.2556 yuan)
Reporting by Haridas; Editing by Sumana Nandy
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